Countrywide Credit Industries has a new computer product designed to tighten its valuable connections with mortgage and real estate brokers.
Countrywide's computer product, dubbed Direct Line Plus, is being tested in Texas and other areas. The company hopes to offer the program free as an incentive to mortgage brokers that work with it.
Brokers, in turn, would offer the system to real estate offices with which they do business.
Trend Toward Alliances
The development reflects a growing trend of partnerships and alliances between the real estate and mortgage banking industries.
Direct Line Plus will allow real estate agents to Perform two basic functions: access up-to-date rate information, and check on the status of a loan as it moves through the approval process.
The update function is seen as especially attractive to real estate agents, according to Cameron King, senior executive director of information services at Countrywide "Homebuyers are often nervous about getting the loan approved, and Direct Line Plus will let the real estate professional check for them."
Dual Purpose
That rates can be accessed through the system will serve a dual purpose, from Countrywide's point of view. It will advertise the mortgage bank's rates to a highly directed audience and will afford real estate agents a convenience they can provide to their clients.
Eventually, Mr. King envisions a second-generation product which could prequalify mortgage applicants at the real estate office. This would bring the software closer to the realm of the computerized loan originations system, something Countrywide has long derided.
Not Alone
Even should a prequalification option be developed, the company will require that loans be closed at a Countrywide branch. This would have the effect of maintaining a wall between the mortgage originator and real estate agent.
Countrywide is not the only major mortgage organization to design such a product. The Federal National Mortgage Association is planning to design a similar computer product that would provide many of the same functions, except that it would carry rates of all Fannie Mae seller-servicers and would real estate agents would be charged a fee to use it.
With refinancing activity likely to be on the wane next year, many companies have an incentive to forge close relationships with real estate agents.
Countrywide is also developing a series of partnerships with real estate agents whereby the mortgage bank would originate loans on-site.
Company officials confirmed that such arrangements were in force, though they declined to elaborate.
Another major California-based mortgage bank, Hamilton Financial Corp., recently entered into an agreement with Fox & Carskadon, a major Better Homes and Gardens franchisee in northern California.
Under that deal, a newly formed affiliate of Fox & Carskadon will originate loans for Hamilton Financial.
