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Special Reports
Document Services: Riding
the Wave of Paperwork
Entyre Gives Investors More Control
By Jennifer Harmon
ANN ARBOR, MI -- Entyre, the developer of the first Web services document closing
system in the mortgage industry, has launched the X4 Wholesale Lending System, an application systems provider-based
closing system supported on its eMortgage-X4 technology.
The new technology was specifically designed to give wholesale lenders better
control over their closing processes and cut the costs of dealing with their partners and customers while at the
same time reducing errors and exception processing and improving customer service levels, according to chief executive
Richard Beedon.
"High costs and great inefficiency still exists in the wholesale mortgage
loan origination/closing process. Using our powerful, new X4 Wholesale Lending System, lenders can create an environment
that allows them to collaborate with their partners and customers much more efficiently than before," said
Mr. Beedon. "X4 Wholesale was designed to be very flexible meeting wholesale lender's unique requirements
without having to wait for costly and time-consuming custom programming. Entyre's focus is on flexibility and control."
Approximately six months ago, Entyre was acquired by a private investment team
headed by Mr. Beedon and Chris Eagle. While the export system was specifically designed to prepare documents, it
was most recently aimed at giving the investment side of the business more control over the process, according
to Mr. Eagle, Entyre's chief technology officer.
"Investors had said, 'Our post-closing is killing us. We're jumping through
hoops to control the broker community.' When we put it out there, wholesalers said, 'This is our problem, too.'
But the system didn't suit wholesalers as well."
The X4 Wholesale Lending System gives mortgage lenders a robust Web services-based
application to allow them to more efficiently manage and control the requisite data and compliant documentation
for mortgage transactions. X4 Wholesale allows for seamless data integration with many of the leading loan origination
systems and other mortgage data management systems in and through its sophisticated rules engine that provides
lenders total control of who "touches" their loans and what those participants are allowed to do with
it.
Since the technology was built as a Web-based solution from its inception, it
does not have the same inherent problems that competing solutions experience from building "Web wrappers"
around older legacy systems.
"A lot of times, wholesalers will sell to different investors, doing all
of their loan products and loans manually. They work closely with the broker community to make sure that it complies
with their specific products," Mr. Eagle said. "The wholesalers work with five or six investors. It's
important to maintain a relationship with them. Our system helps the wholesaler move their portfolios."
The industry hadn't recognized the issue that post-closing starts before the loan
is actually closed, he said. "When they try to clean it up, it's too late or very expensive. Now wholesalers
are able to control it before the fact."
With X4 Wholesale lenders, the benefits for wholesale lenders are especially pronounced
in the closing and post-closing process, added Mr. Eagle. "Wholesalers simply decide how they want the mortgage
chain set up, who can access the loan and which data elements they are allowed to modify.
"These decisions can vary by sales channel, or even by the name of a specific
processor. The result is that lenders can insure the integrity and accuracy of the closing package. They can focus
their attention and resources on managing exceptions instead of worrying about quality control on every loan that
is in their pipeline. The cost savings to the lender are tremendous."
While the market has gone down substantially as far as transactions, according
to Mr. Beedon, the company is seeing a lot of new accounts and interest from very big lenders.
"This system is more powerful. Most people like more feature functionality.
Because we are an ASP model, we actually host the system," Mr. Beedon said.
"Even though it looks like the customer's website, we host it and maintain
it, make changes during real time and everyone has access to those changes. Every week we put out releases of new
products and services."
In the old environment, software was updated a couple of times a year, added Mr.
Beedon, suggesting now is the time to go out and investigate new technology.
"Cycles are very tough for the industry, but even as interest rates go up
in the next four or five months, the good news is people have time to look at systems like ours that can cut their
costs substantially," he said.
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