IBM’s Mortgage Fulfillment Unit Receives HUD, State Approvals
By Anonymous
Charlotte, North Carolina-based IBM Lender Business Process Services Inc. (IBM LBPS)-a wholly owned subsidiary of Armonk, New York-based IBM Corporation-specializing in mortgage origination services, announced it has been approved by the Department of Housing and Urban Development (HUD) to conduct mortgage origination services for federally insured Federal Housing Administration (FHA) loans. With the ongoing credit crunch and the disappearance of several 90/10 and no-money-down loan products, there’s an expected increase in lenders leveraging federally insured FHA loans for new homebuyers. To that end, IBM LBPS’ approval to provide mortgage origination in this space will become an important resource for lenders looking to expand in this area, according to Greg Sullins, executive director of IBM LBPs.
“We are pleased to have secured the HUD approval and to be nearing completion on the state licenses essential for us to support mortgage lenders with a private mortgage label fulfillment service,” said Sullins. “IBM’s solid mortgage fulfillment solutions will provide lenders with the technology and analytics they need to make better lending decisions in today’s increasingly volatile market.”
In March, IBM announced the formation of its new business unit to specialize in mortgage origination services. IBM LBPS offers a full range of lending services, including loan application, underwriting, processing, vendor management, document preparation and loan closing.
IBM LBPS is designed to enable mortgage lenders to replace the fixed costs associated with typical loan fulfillment operations with a variable-cost framework, freeing up lenders to focus more on providing better personal service and support to consumers, explained Sullins.
Sullins said IBM LBPS has also obtained regulatory approvals and licenses to provide these services in the vast majority of states, and intends to complete the state licensing process by the end of this year.
Copyright Mortgage Bankers Association of America Oct 2007
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