Encore Credit Corp., Irvine, Calif., has chosen Commerce Velocity, Irvine, Calif., to provide a mortgage origination software service. The new software will allow Encore to increase the percentage of applications it handles while funding loans more quickly. Commerce Velocity's software will focus on automation and the Internet, according to a story that ran in today's MBA Tech Newslink.
I recently spoke with Umesh Verma, CEO of Commerce Velocity about why his company is so focused on speeding up the process. His answer was that speed was a pre-requisite for mortgage industry success: speed to market with new products, speed following up on leads, speed in processing loans and ultimately speed at moving deals into the secondary market. The company provides technology to aid lenders at all points along that process.
The problem, he says, is that most technologies just speed up old processes. That's no longer sufficient in today's mortgage business. Furthermore, he asserts that mid-sized lenders need direct access to Wall Street liquidity that can be made possible through the proper application of technology.
Commerce Velocity technology is currently being used by Accredited Home Lenders, a national subprime lender that originated $3.6 billion in mortgage loans during the first quarter of this year.