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Special Reports
Document Services
This Year: More Products, Consolidation, Regulation
By Amilda Dymi
In 2006, the mortgage industry saw increased demand for mortgage document preparation
technology and a taste for strategic alliance partnerships, according to lending and servicing technology provider
Lender Support Systems Inc. Going forward, LSSI believes this trend will most likely continue into this year and
beyond. "The document services industry is ripe for a consolidation of providers," said Cary Burch, LSSI
president and CEO. "With the heightened discussions of MISMO, e-mortgage and electronic delivery, we will
see that the closing documents will play a key role in the delivery of this vision. The most valuable component
of the mortgage transaction is the closing documents. This is what ties the property to the instrument, in which
the capital markets and investors buy and sell."
Apparently, the company's success and expansion through strategic partnerships in 2006 was part of a wider industry
trend of catering to business growth opportunities through this venue. Mortgage lending customers "made it
loud and clear, improve[d] productivity, lower costs and make it easier for them to use our services," Mr.
Burch said. Customer demand was the drive behind LSSI's "consistent growth over the past three years, including
this past year's declining market."
The strategy consisted of a four-tier growth approach, the executive said, through improved assistance to existing
customers, strategic alliances and partnerships, new customer acquisitions and growth by acquisition.
Starting in 2006, he added, one important company focus has been on aggressive strategic alliances that "seamlessly
integrate our products and services with other mortgage technology providers and customer systems."
In 2006 alone, the company said it doubled its strategic alliances adding another 10 new business partners. This
year the goal is to continue onto that path while "leveraging MISMO standards, writing custom interfaces and
leveraging the newest technologies," he said.
As to how the company expects to tackle business growth and expansion challenges this year, he believes growth
in 2007 will come from "continued strategic alliances coupled with new product delivery." LSSI is currently
developing "several new products," he said, which will be launched by the end of the first quarter of
2007 in the hope they will enable the company "to post another record year."
The biggest challenge this year lies in expanding the company's market share within the boundaries of more narrowly
specialized markets, or "fighting for a smaller piece of the market."
He is optimistic, however, that LSSI "is more than capable" to address these challenges since its executive
management team is comprised of former mortgage lenders who fully understand the life cycle of the mortgage loan,
who understand the lending cycle "from the touch point of the customer all the way through to the capital
markets."
In addition, LSSI gathers customer feedback so it can offer more efficient products and services.
Among 2006 company product highlights, LSSI lists Docs3D, an electronic mortgage option that simplifies the loan
closing process while offering Mortgage Industry Standards Maintenance Organization compliant loan documents along
with disclosures as required in all 50 states.
Such products serve the market well, the executive said, also because going forward he sees a growing need for
regulation as a consistent industry trend this year.
This year "will bring about a more concentrated effort towards compliance, both regulatory and investor compliance,"
he said. "Furthermore, fraud and loan quality will continue to be on the front page as seen by the recent
demise of several large lenders. Vendors that provide these services will be keenly positioned to provide value
to lenders during 2007."
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