New product suite completes the efficiency revolution in mortgage lending with descriptive and predictive analytic scores, tools, and information products
OXFORD, Miss., Oct. 3 -- With its new collateral-focused analytics, FNC, Inc. arms mortgage lenders with decision-making tools for the life of a loan, from origination to review to capital markets.
Branded as Collateral DNA, these descriptive and predictive analytic products use a rich database of appraisal and public record data to quickly deliver accurate information and scores on a particular market, property and vendor, said FNC's Chief Operating Officer Robert Dorsey.
"Delivering these analytic tools has been part of FNC's corporate strategy from the beginning," Dorsey said. "Over the years, we've worked to build the National Collateral Database, which recently reached critical mass and empowered us to build these products. We think Collateral DNA is groundbreaking."
It takes two numbers to make a loan: a credit number on the applicant, and a collateral value for the property. Before the nation's top lenders implemented FNC's Collateral Management System®, collateral information had been slow, unwieldy, and sometimes unreliable. The CMS® reduced warehouses of appraisal forms into simple XML data streams, speeding origination, review and servicing.
Through its collection of vast amounts of appraisal data -- millions of appraisal reports pass through the system every year -- CMS fuels FNC's collateral-focused data and analytic products. The National Collateral database blends public record and real estate sales information with real-time appraisal data, the gold standard of collateral valuation, making FNC's analytics more accurate and up-to-date, Dorsey said.
FNC's clients, which include more than 25 of the nation's top mortgage lenders, have already implemented some Collateral DNA solutions. Many now use FNC's Appraisal Score to make appraisal review even more efficient and focused. The Appraisal Score delivers automated collateral underwriting in the form of a simple score and a report that directs the underwriter to potential valuation pitfalls.
Much like a FICO credit score, the Appraisal Score ranges from 0 to 1,000, with 1,000 being a perfect score. The lower the score, the more troubling the valuation.
FNC developed the Appraisal Score by weighting its Generally Accepted Appraisal Rules(TM), which automatically review appraisals using more than 450 rules to screen for regulatory compliance, compliance with Fannie Mae and Freddie Mac standards, potential overvaluation or inconsistencies in the report.
"Appraisals have always been scored using an outdated, manual review process," said FNC Data Operations Manager Steve Costello. "Now, FNC's Generally Accepted Appraisal Rules and the Appraisal Score make appraisal review fast, accurate and automated."
FNC Chief Executive Officer Bill Rayburn said the strategy for Collateral DNA is simple -- give lenders the tools they need to profitably fund loans in what he calls the new "Collateral Era."
"Credit-based data and analytics saved lenders so much time and money that they could afford to make more loans with less risk through a fairer, quicker and more profitable process," Rayburn said. "Everything changed. Data and analytics became the standard for assessing credit impacts on loans. At FNC, we're completing the efficiency revolution by doing the same for collateral."
Other Collateral DNA products bring more efficiency to the process. o Easy Price Opinion (EPO), a Web-based application useful for equity loan production, offers interactive maps and comps backed by FNC analytics and Fannie Mae guidelines. o Data Express allows fee or staff appraisers to auto-populate their appraisal forms with the best comps, complete with transaction histories and plat maps. o Loan Pool Valuator features an easy-to-use interface tool that validates the valuations of all loans in pool, useful in correspondent lending, servicing and capital markets.
Collateral DNA Product Manager Jocelyn Atkinson said many more prototype products are being tested, researched and developed. She works with a team of developers, designers, and data experts to harness the power of the National Collateral Database.
"Our challenge is to take this incredible resource -- our data -- and deliver analytic tools that make sense for lenders," Atkinson said. "A rich data source means we have endless possibilities. We rely on our lender clients for feedback and strategic direction."
"What do they need most? What will make them more efficient? How can we streamline the process?" Atkinson said. "It's not an over-the-top claim. Collateral DNA is an efficiency revolution for mortgage lending."
About FNC, Inc.
Headquartered in Oxford, Miss., FNC pioneered real estate collateral information technology. Since 1999, FNC's Collateral Management System® (CMS®) has streamlined mortgage operations by converting paper to data to knowledge. FNC's success positioned the company at No. 154 on Inc. 500's list of the fastest growing private companies in America in 2004. As the mortgage market enters the age of collateral, FNC will continue to provide the data and analytics to help lenders make informed decisions. Visit FNC's Web site at www.fncinc.com
Source: FNC, Inc.
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Web site: www.fncinc.com