Contour Software has committed itself to giving $8,000 worth of software and technical support to a start-up nonprofit mortgage company.
The Campbell, Calif.-based technology firm is providing its mortgage lending software to Genesis Mortgage Co., Haddon Township, N.J.
Genesis, which is operating out of office space donated by CoreStates Financial Corp., is awaiting licensing from the state of New Jersey.
License Expected Soon
Raymond Ellis, president of Genesis, said the company expects to receive a mortgage banking license within a few weeks.
"We've been told that once we get our licensing in place, some large banks are going to support us on the administrative end," he said.
The nonprofit company plans to originate mortgages for low- and moderate-income families and sell the loans to banks to help them meet Community Reinvestment Act requirements.
Under that federal law, banks are required to lend in lower-income areas where they do business.
Mr. Ellis said Genesis is the first not-for-profit mortgage company of its kind in New Jersey.
He added that the company plans to counsel families about the mortgage process, saving for a down payment, and establishing or cleaning up credit histories.
Janet R. Gordon, managing consultant at Barefoot, Marrinan & Associates Inc. in Washington, said that although nonprofit organizations have long offered counseling to lower-income families and some others act as mortgage brokers to earn fees for other activities, start-up nonprofits like Genesis are extremely rare in the industry.
Mr. Ellis said Genesis will initially originate mortgages in Camden and other economically depressed areas in South Jersey.
A number of commercial banks and thrifts in the region have expressed interest in purchasing loans from Genesis, as well as providing leads, he said.
Contour will provide four software packages - Loan Finder, Loan Handler, Loan Closer, and Loan Trucker.
Scott Cooley, president and chief executive of Contour, said that with the donation he hopes "to extend the pride of owning a home to a lot of families who would otherwise never be able to realize that dream."
Software Seen as Essential
"My first concern was [creating] a streamlined and effective mortgage department," said Mr. Ellis. "This requires sophisticated software for tracking secondary markets, originations, streamlining approval; and closing document generation, regulatory compliance, and being able to originate reports based on" factors such as CRA requirements.
Mr. Ellis has three decades of exprience in the banking and thrift industry. Most recently, he worked to set up the mortgage department at Sterling Bank, a $49 million-asset bank in Mount Laurel Township, N.J.