Monday, March 27, 2006

Mortgage Cadence: A model starting point

Here's another example of an agile mortgage technology provider making it easy to get a quick return on investment with its SOA-based loan origination system (LOS), although at Mortgage Cadence, they call it an Enterprise Lending Solution (ELS).

The company's Best Practices model is being offered as a standard offering to financial institutions looking for a short implementation period of its full-featured loan origination
system. With implementation timeframes of three weeks for ASP clients and 100 days for large,
enterprise clients, the Best Practices model is Mortgage Cadence’s “springboard” to a more custom implementation process.

Very long and arduous implementation cycles have constantly plagued the banking and mortgage industry. Stories of 12 to 24 month “go-lives” have become the rule rather than the exception, and have desensitized bankers to the notion of quick ROI. To counter these notions, Mortgage Cadence utilized its experience from existing clients and years of consulting knowledge across multiple business disciplines to develop Best Practices.

Best Practices is an out of the box, base-configuration of the Mortgage Cadence lending platform. This configuration allows Lenders to rapidly implement a total technology solution including “out of the box” lending functionality, as well as a scalable infrastructure foundation. Encompassing the entire lending lifecycle -- from lead management through funding and post-closing -- components of Best Practices include: product definition and guidelines; generic workflow set-up for departments, groups, security settings, statuses/tasks, validations, and screen flow; and document mappings.

I think this is very smart. It provides a tool that the lender can use today, reducing implementation risk, but also promises to become more powerful as the lender begins to modify the rules governing the transactions.

Mortgage Cadence employs the a business rules management tool it developed, called ACE, to allow business managers to configure the software. It is very intuitive. I was able to create complex business rules after a short demonstration (and I'm just a writer).

The Mortgage Cadence offering comes with automated decisioning configuration, product and pricing functionality (including “best fit” tools), third-party services and compliance solutions integration, automated underwriting, document prep / delivery, auto-distribution capabilities, imaging and standard reporting.