Default mitigation and regulatory pressures are evolving at near light speed for mortgage lenders, which are increasingly seeking tech hosts to manage a risk and compliance game in which Monday’s rules may no longer apply by Friday.
Such an environment is ripe for vendor consolidation. For example, Fidelity National Financial (FNF), a provider of title insurance, specialty insurance and mortgage services, last week acquired Commerce Velocity, which sells portfolio risk technology to mortgage lenders, servicers and investment banks and has a suite of products offered on a software-as-a-service basis.
Analysts and mortgage tech experts say SaaS, cloud computing and other hosted or outsourced tech arrangements will become popular in the near future to help lenders manage a new load of risk management, loss mitigation, workout and compliance responsibilities while maintaining or even reducing internal staff.
FNF hopes to utilize Commerce Velocity’s three Web-based SaaS products: Spectrum, Optimizer and AssetX. Spectrum is an end-to-end origination platform, which applies risk models and workflow rules to repair loan files. Optimizer helps services maximize cash from delinquent accounts and enforce workout consistencies for default management. AssetX provides the ability to consolidate and evaluate data sources for acquisition and management of performing and non performing loan pools.
The tech firm says it will align Commerce Velocity’s technology with ServiceLink, FNF’s lending platform and a provider of origination and default solutions—creating a workflow management product that ranges from origination through loss mitigation, default and asset disposition.
This story first appeared in Bank Technology News.
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