To help lenders move toward a fully electronic mortgage process, the data processor Fiserv Inc. of Brookfield, Wis., is buying the online U.S. mortgage processing operations of Emergis Inc. of Montreal.
The Emergis business offers data-sharing services for loan applications and disclosures, loan closings, and document storage. Its Vendor Services Exchange, a Web portal, lets mortgage originators and settlement services providers exchange data with each other and with other parties, including Fiserv.
The deal is expected to close this month. Fiserv would pay $13.75 million, including $12 million when the deal closes and the rest after a transition period of up to six months, Emergis said Tuesday. The acquired operations would become part of Fiserv’s Lending Solutions unit.
Patricia L. Jones, the Fiserv unit’s chief technology officer, said the acquisition would help Fiserv accommodate lenders as they adopt a fully electronic mortgage process, because the Emergis services can be used individually or as a whole.
“If you have a lender who is ready to move forward with using the application and disclosure services to share documents with borrowers, but not ready for electronic closing, we have the flexibility with this platform to let people move at their own pace,” Ms. Jones said.
Currently the data-sharing services are available through the Web, but Fiserv wants to develop interfaces to let loan originators order the services through their origination systems, Ms. Jones said. Midsize and large lenders would use such system-to-system interfaces most frequently, she said.
By using the Emergis services, Fiserv would be able to help them eliminate paperwork and save time and money, Ms. Jones said.
Fiserv found a motivated seller in Emergis, which said it expected its U.S. operations to lose money this year on an EBITDA basis.
Ms. Jones said that because of cross-selling opportunities, Fiserv is in a much better position than Emergis to profit from the data-sharing services.
All of the 35 to 40 employees at Emergis’ office in McLean, Va., are expected to join Fiserv.
