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Special Reports
Broker or Banker: Is a Step
Up Right for You?
Tech May Aid Broker to Banker Moves
By Anthony Garritano
DENVER -- The configurable design of Mortgage Cadence, a loan origination system
put out by 3T Systems here, makes it easy for a mortgage broker to go in and change the system as the user becomes
a banker without the need for IT to go in a write code and that is helpful when it comes to making the broker to
banker transition, according to company executives.
"The transition from broker to banker in general really entails that brokers
get their license state-by-state and product-by-product," said Kim Karouni, executive vice president at Mortgage
Cadence. "As they're making that transition, Mortgage Cadence can help because it's so flexible and will support
multiple changes very quickly and easily.
"The broker can configure the product to include all of their wholesalers
and all of their guidelines to help them take the loan through the process in preparation for that final hand-off
to the investor," she continued. "Workflow in the system can be continually modified as they get more
state licenses and the ability to deal with more loan products."
In addition, Mortgage Cadence includes additional tools that can make the transition
easier. "Internally, when the broker becomes a banker, they are going to be assuming all of the risks and
rewards associated with the loan, which will make compliance a big issue because they will be the ones held liable,"
said Ms. Karouni. "With Mortgage Cadence we have tools available to help them monitor that risk such as compliance
monitoring, high-cost tests, Truth in Lending, HMDA requirements, etc."
"In the past, all brokers had to use was a POS, which is purely an origination
tool," added Michael Detwiler, president of 3T systems. "Once they're making the transition, Mortgage
Cadence can allow them to take advantage of being a banker in certain states and still being a broker in other
states."
The system's claim to fame is that the process of changing Mortgage Cadence to
accommodate the user's new status as a mortgage banker can be done by anyone and does not require a technology
professional at all.
"The system is configurable so the customer can consult their legal department
and set up their guidelines accordingly," said Ms. Karouni. "For example, the client can program the
system exactly when it should decide to perform certain tests, what the criteria for that test should be, what
the action will be if the loan fails the test, and all that is automated once the user configures the parameters."
Programming in Mortgage Cadence is done through the system's admin module, according
to Mr. Detwiler. A user can select a given state and the system will automatically implant all the rules in that
state into that user's workflow. "Repeatedly we hear from our customers that they're very impressed with the
fact that the system can be changed without having to rely on an IT person because most banker shops don't have
a huge IT staff," he noted.
The price factor is also a clear advantage. "With other systems, each piece
requires a new license that a customer has to purchase in order to add it into their existing system," said
Ms. Karouni. "In the end, this costs the user time and money. In our case, the customer gets everything with
Mortgage Cadence for one price."
In terms of how popular the broker to banker transition is in the current market,
Mr. Detwiler said, "It's definitely something that we're seeing more and more of."
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