Qvault is one of these financial services technology firms that watches the market and then responds with technology appropriately, as opposed to spending millions on development work for a new platform that may, or may not, find a home. This was the firm that developed Status Sweep to Web-enable Calyx Point, providing fast status updates to borrowers and Realtors.
Status Sweep was a great tool during the refi boom, when loan officers were too busy taking new apps to stay in touch with the people in the pipeline. It still works great today.
Now, Rob Cecil and his team over at Qvault are onto another industry trend, well, actually two.
The company recently announced that it would be providing loan flow and transaction coordination support to Financially Strong America, Highland, New York, a non-profit organization that offers free education, budget analysis and budget planning tools to consumers. FSA contracts with lenders in order to provide these services to the borrowers they serve. Then the lenders make these tools, along with Qvault's loan processing services and technology, available to their broker networks.
I think this is smart for two reasons. First, we expect to see delinquencies rise in the days ahead. Combined with the higher margins in the subprime business and the lower incidence of A-paper refinance, that trend will help see a lot more lenders getting serious about B&C loans. These borrowers need these additional services and are likely to seek them out in order to get a home loan. Originators that offer them will have a competitive advantage.
The second reason is that as volumes are dropping across the industry, lenders are seeking to build out their wholesale networks. This is another incentive they can offer brokers that write loans for them.
At least one lender is already on board, Secure Mortgage Corporation.