Computer Power Inc., Jacksonville, Fla., has signed a major mortgage insurer to use its computerized network to transmit data electronically in an effort to speed up the mortgage origination process.
PMI Mortgage Insurance, a San Francisco-based insurer of residential mortgages, has subscribed to CPI Interchange, a network that is used to connect lenders with mortgage insurers, servicers, credit bureaus, appraisal firms, and other parties involved in mortgage origination.
The link is expected to be operating by the end of September, officials said.
"We're finally seeing results coming out of the effort that is being led by the Mortgage Bankers Association and Freddie Mac and Fannie Mae to bring electronic data commerce into the mortgage industry,"said Pat Mikel, vice president of customer technology at PMI, a unit of Allstate Insurance Co. "We're been behind the times."
Ms. Mikel said she expects the automated system to reduce the turnaround time on underwriting mortgage insurance from about 24 hours to minutes. The electronic transmissions will replace information that is now sent via fax or courier, she said.
"PMI is another partner who has joined in our network which is intended to link mortgage industry trading partners to and among each other," said Joe filoseta, senior vice president at CPI, a division of Systematics Information Services Inc.
"Probably better than in 60% of the situations there will probably not be huma intervention," said Mrs. Mikel. "When it doesn't get an automatic approval, then it is referred to a human underwriter." With the system, PMI will not need to reenter information manually.