Web-Based Technology For Lenders And Settlement Service Providers.(services)

With the shrinking refinance boom and pressure to bundle loan and settlement costs into a single, guaranteed package, lenders and settlement service providers are looking for ways to lower costs while reducing the time it takes to process loans. How will the application of new, robust, Web-based technology enable lenders and settlement service providers to work together to stay ahead of the curve?

There stands today a clear market demand for the simplification of the real estate mortgage closing process. Department of Housing and Urban Development (HUD) Secretary Mel Martinez has been the catalyst in elevating the discussion of bundling as the means by which to simplify the process and, in turn, meet this demand. As consumers continue to make their voices heard, legislative and regulatory officials are listening. So are mortgage lenders and settlement service providers, and they are responding with new and innovative ways to meet the demand for change.

Bundling will ultimately allow consumers to shop and compare loan packages among various lenders. That, coupled with the slowing of the refinance boom, means lenders will have to work harder to compete for business. They will have to look for new ways to lower costs-beyond yield spreads and interest rates. They will need to provide better service while reducing the time it takes to process and close loans. Settlement service providers who can provide multiple products and bundled packages to lenders at faster speeds will be much better positioned to survive in this new environment.

The application of new, robust demand-side lender technology with complementing supply-side vendor technology will enable lenders and settlement service providers to work together to stay ahead of the curve and meet emerging market needs.

Web Services-Based Order Management And Delivery Systems

Costly custom interfaces between proprietary software and technology platforms are quickly becoming obsolete with the move toward Web services-based order management and delivery systems. Today's vendor access networks and settlement service product procurement platforms simply do not provide the capability to effectively support and facilitate bundling and Guaranteed Mortgage Package Agreement (GMPA) offerings. Current systems are limited in functionality to vendor management functions (vendor selection, contract negotiation, service-level agreements and performance reporting), transaction management functions and electronic commerce capabilities (order routing and vendor connectivity). To effectively support bundling and GMPA offerings, the platforms need to support ordering and management of multiple products and also facilitate real-time product quotes.

Automated Decisioning