California Firm's Software Allows Laptop Loan Processing

Lenders who are low on the technology totem pole, take heart. There's still time to catch up.

"Being a fast follower isn't such a bad thing," said John Caner, chief operating officer of Loansoft Inc., a mortgage software manufacturer used by several large lenders.

"A number of top 10 lenders are waiting to make technology decisions," and don't yet have automated origination systems, Mr. Caner said.

When lenders do decide to buy a system, Mr. Caner is hoping they choose his newly revamped Works 3.0.

Loansoft, based in Berkeley, Calif., has spent the past 10 months upgrading its point-of-sale mortgage origination system, making it easier for loan officers to use.

Accubanc Mortgage Corp., North American Mortgage Co., and Knutson Mortgage Corp. are among the 35 lenders signed onto Loansoft's system, which allows loan officers to process loans from laptop computers.

Accubanc Mortgage said it has been testing the upgraded system since April, and plans to have more than 350 loan officers signed on by October. Accubanc, which has been using a Loansoft automatic origination system since 1995, originated more than $5.6 billion of loans in 1996.

Midsize-to-large lenders must decide whether to buy an automated origination system or build one from scratch, Mr. Caner noted.

Fleet Mortgage Corp. opted to build its own system-and it cost more than projected. The company's experience may have deterred other lenders from developing an origination system internally. "It's easy to get a prototype up and running, but it's harder to get one that works in the field," Mr. Caner said.

Loansoft's latest origination system allows lenders to customize screens, calculations, data fields, forms, and documents per loan officers' requests, Mr. Caner explained. The software also allows lenders to prequalify loans for conventional, FHA, VA, and 203(k) programs, and sort leads by buying criteria.

The Works system carries a start-up cost of $525 to $875 a unit, in addition to annual support and maintenance costs.

Loansoft is also working to develop consumer Internet sales products, Mr. Caner said. On-line mortgage originations, which were $217 million in 1996, are projected to be almost $13 billion by 2000, according to Forrester Research, Cambridge.

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