Friday, June 18, 2010

Home Lending Source Goes Live with Mortgage Builder Software

Home Lending Source, Middleburg Heights, Ohio, has selected Southfield, Mich.-based Mortgage Builder’s loan origination software (LOS) system after an exhaustive due diligence process, the company said in a release.

The Cleveland area-based lender was formed from an existing mortgage company and an investment group that included several people with extensive experience in building companies. Among them was operations and business process engineering specialist Zubin Nagpal, a principal owner, who immediately saw that the company needed reengineering to compete effectively with the big-box players in the mortgage business. Since the origination effort centers on the LOS, a new lending software system was among the first decisions to make.

Nagpal had largely decided he wanted an end-to-end system rather than buying one integrated from various components, preferring the single platform concept and the data integrity it brings to a business. According to the company, he did demos of 15 competing LOS systems in his first 40 days on the job, and spoke to dozens of third party providers for their impressions of the leading LOS firms.

Nagpal narrowed the field down to five companies that were deemed the best and brought in a team of users to help him make the next cut. The team, consisting of a branch manager, the head of underwriting and a closer, saw demos of the five and reduced the group of contenders to three. Adding additional operations people to the team, they went on-site at several client companies and interviewed actual users of the three LOS systems to eliminate one more.

Next came the acid test: they invited the two finalist companies into their offices to show the systems to loan officers and the department staffs.

“We picked Mortgage Builder,” Nagpal says. “It was the integrated system we were looking for and had a superior reputation among our fellow Lenders One alliance members. Most importantly, Mortgage Builder gave us the technology sophistication we needed to grow and compete with the biggest lenders without making a prohibitively large investment to buy an enterprise-level system.”

Home Lending Source chose Mortgage Builder’s Application Service Provider (ASP) delivery model, but plans to switch to hosting the software on their own servers in the near future.

“This was another part of Mortgage Builder’s appeal,” Nagpal explains. “Their offering allows us to start off with their taking care of the hosting and maintenance and then switch to an in-house model later, when we are ready to take it on. Mortgage Builder lets us go from one option to the other seamlessly, with no impact to the LOS’ features or capabilities.”

Training and implementation timeframes were also an important consideration for Home Lending Source as they chose their LOS. Mortgage Builder’s reputation among its clients gave its platform the edge there, too.

“Our head of operations set an aggressive implementation schedule of 75 days and, with Mortgage Builder’s help, we were successful in achieving it,” he relates. “Their trainers have been fantastic, and we’ve had great response from Customer Support, just as their other clients told us during the due diligence phase.”

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