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Tech Debate

Now that AmTrust has been acquired will it's electronic mortgage strategy chane in 2010? Join the conversation.

Recent Technology Headlines

• Global Venture Capital Firm Invests in 1010data
• Vendor Launches Online Resource to Help Lenders Comply With Reg E
• Abacus Accounting Merges with Mortgage Banking Solutions

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Market Data

We welcome your comments or questions! Please e-mail them to our editor at Anthony.Garritano@SourceMedia.com

Trend Watch

Boy Are Lenders Slow Sometimes, OK All The Time

By Anthony Garritano, Editor, Mortgage Technology Magazine

Despite a drastically changing market, lenders are still showing that they are slow to adopt technology as a whole. In total, 67% of respondents say lenders are slow to automate, even in the face of new regulation. Why?

David Green, president of quality control vendor The StoneHill Group, explains, “Lenders are slow to adopt new technology due to market conditions. With the huge variations in production volumes that exist today, companies will not be spending money to upgrade or change systems. There is just too much uncertainty in the market place right now. On the other hand, there are many start-ups that are investing in new technology, especially banks and credit unions that are getting into the mortgage space either direct or partnering with a mortgage company.”

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Industry Outlook

Differentiate to Survive

Perspectives By Michael Hammond, President and Founder, NexLevel Advisors

Lenders and vendors are under intense pressure to survive in today’s current mortgage environment. Products and services that were in great demand just a couple of years ago have almost completely evaporated. Lenders have had to dramatically adapt to these market conditions by changing their product mix, origination process, underwriting guidelines, valuations and funding to produce saleable and profitable loans. Servicers have had to shift focus to loss mitigation, loan modifications, short sales, REO’s and foreclosures to remain viable. In addition, the current regulatory environment is constantly, changing rules and adding significant pressure to the entire mortgage progress.

Lenders and servicers are not alone in feeling the pressure. Vendors are frantically working to respond to these challenging times by rolling out new products, realigning development efforts and creating strategic partnerships to meet the new demands while striving to remain compliant. They are faced with tough questions: Do our current products have enough flexibility to be modified or do we need to develop new solutions from scratch? Are these new products long-term solutions that have sustainable revenue models or are they just a quick fix that has a short shelf life? What types of products and services will lenders and servicers invest in during these market conditions?

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Video Newscast

Click the screenshot image to watch Tony Garritano discuss New Appraisal Rules More Appraisal Transparency HVCC Lender Compliance HVCC Appraiser Compliance The Future of Appraisals

Alliances and Interfaces

Verisk Analytics Acquires Strategic Analytics

By Amilda Dymi, Contributing Editor, Electronic Mortgage Technology Newsletter

Some technology providers of expertise in predictive analytics, data mining, and risk scoring are expanding their market reach through alliances between their own kind. Case in point, Verisk Analytics Inc. of Jersey City, N.J., specializes in risk assessment solutions for the insurance, healthcare, mortgage lending, government, risk management, and human resources industries in the United States and around the world.

Verisk is now the parent company of another unit specializing in enhancing risk mitigation through forward looking interdisciplinary tools. Verisk acquired a provider of credit risk and capital management solutions, namely Strategic Analytics, which focuses on retail credit modeling that enhances regulatory compliance.

Strategic Analytics will integrate with Interthinx, another business unit of Verisk Analytics, to provide U.S. residential mortgage market customers advanced loss mitigation solutions and professional services. According to president of Interthinx, Kevin Coop, “These tools are applicable and are currently deployed in all verticals of consumer lending, including automotive, credit card and student loans, and mortgages.”

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