Dexma: Technology Can Revive MBS Market.(Special Report)

Byline: Anthony Garritano

Edina, MNaMost lenders view technology in silos and apply it to fix isolated problems. However, the Dexma approach offers a broader fix that the vendor hopes will go so far as to restore investor confidence in the mortgage industry.

aTechnologists have ignored the length between origination and the secondary market. Why? Because Fannie Mae and Freddie Mac have really dictated how origination works. And what the GSEs didnat pick up, Wall Street did,a explained Steve Mase, president of Dexma here.

aWe as technologists have to provide small and midtier lenders the ability to independently go after the secondary market. In the next few years weare going to close that gap. Weare going to have to do it out of sheer necessity.a

But how does the Dexma approach differ from what other origination vendors offer? aSome technologists will try to become lenders and try to solve problems that way,a answered Mr. Mase.

aTo me that is going to look like Angelina Jolie trying to morph herself into Danny DeVito. What I mean is that this strategy destroys something of great beauty and turns it into something else. The industry doesnat need another intermediary.

aOther vendors will throw out niche offerings in the hope that theyall address the efficiency card. This is a cyclical play really. We go from large offerings to small offerings and back again depending on market conditions. The next few years I think lenders will look harder at the total process. You want to give lenders a straight path from origination to the investor.a