Network Financial Services is rolling out this week a computerized loan-originations system that it will market to real estate companies.
The system, called Prosolutions, will be provided free to companies that book at least two loans a month, according to Lee J. Danna, chief executive officer of the San Jose-based company.
Otherwise, companies will be charged $195 a month. Computerized loan-originations systems allow real estate companies to market mortgages to consumers directly.
Fed Rules Spur Trend
Prosolutions will offer the mortgage product of Westmark Mortgage, a Network Financial subsidiary, as well as the mortgages of other providers, according to Mr. Danna.
Network Financial is just one of many companies moving aggressively to develop computerized loan-originations systems in the wake of new federal rules facilitating vertical integration of mortgage and real estate companies.
Many realty companies, hungry for new sources of revenue in lean times, are working in a variety of ways to align themselves with providers of mortgages.
Master Mortgage L.P., a joint venture of 23 large real estate companies, is currently seeking a nationwide provider of mortgages for members' mortgage banks.
The Prosolutions system will allow real estate companies to earn fees for mortgages funded through the system. As is the case with many such systems, real estate agents will also be able to preapprove borrowers within minutes, a convenience that can cut down on the number of homebuyers that |fall out', or get cold feet, according to Mr. Danna.
Creative Solutions Inc. of Atlanta is providing lenders with a fax-based system that similarly preapproves borrowers in minutes. The lenders then make arrangements for real estate brokers to use the service.
Network Financial Services has been aggressively moving to position itself for the anticipated integration of the real estate and mortgage industries. In July, the company purchased Westmark Mortgage as well as Mortgage Lenders Financial Network of San Jose.
Despite the fact that the company owns its own mortgage bank, Prosolutions opted to carry multiple lenders. "We didn't think that being the only lender would have been a good idea. You can't be all things to all people," said Mr. Danna.
Network Financial, which owns 31 ERA real estate offices in northern California, is already using the computerized loan-origination system itself
Besides attracting real estate companies with the prospect of fees for originations, Mr. Danna hopes that he can lure some who wish to use the software package as a office management tool, an included feature. The system allows users to track realty listings as well as automate book-keeping, according to Mr. Danna.
The system will also carry homeowners insurance, another potential source of revenue.