Lenders Keen on Bundling.

Edina, MN -- The industry is calling for the automation of settlement services to further streamline the mortgage process. In terms of dollars and cents, 61% of respondents to this publication's affiliate, the Electronic Mortgage Technology Newsletter, believe that this approach will save between 26 and 50 basis points per loan.

To sweeten the pot further, technology vendors like Dexma here, Fiserv, Brookfield, Wisc., and ATM Corp. of America, Pittsburgh, are fully integrating a bundled services platform into their offering that will seamlessly transmit the necessary data out of the user's LOS to the third-party service and back to the LOS once that service is completed.

For Bethpage Credit Union, Bethpage, N.Y., the ROI of bundling is already being realized. "Bundling means lower cost per transaction and greater efficiency in the ordering process," said Gregory Wirth, assistant vice president of lending for BCU. "With the bundle of services I believe we get a better price from the vendor because we have the weight of the technology provider behind us.

"It also saves us from having to go out of our LOS and to their site or to have to order over the phone," he said. "It's only one click."

"Utilizing bundled services allows lenders to offer streamlined loan programs (e.g. one fee options) while better understanding and controlling costs," added John Barnes, chief operating officer at Prime Alliance Solutions, Tukwila, Wash.

"There are two main benefits of bundled services," explained Joe Brancucci chief lending officer at Boeing Employees' Credit Union, Tukwila. "First, it's less confusing for members/borrowers. Plus, it's easier and more efficient for lenders to account for one fee than having to track and reconcile multiple fees."

In terms of the types of bundles most sought after, Mr. Wirth noted that BCU wants to bundle "everything we can. We view this as something that's cheaper, quicker, more efficient, it's the way we want to go."