Pipeline: Up Close and Personal: Originations by Video

Editor's Note: We sent our man JJ to the giant PC Expo at the Javits Center in New York recently to check out Intel's new video conferencing system for originating mortgages. Here is his report:

***

Ilyse Boukather was blushing. She tucked her chin slightly to hide a blooming smile.

"Hi," I said.

"Hi. Can I help you get a mortgage?" she asked.

"That's what I'm here for."

Here? I was in New York City; she was in Newport Beach, Calif. We were "meeting" so I could simulate getting a home loan - by personal computer.

This originations vehicle uses novel video conferencing technology that was displayed prominently by several vendors amid the tumult of this year's PC Expo.

I was getting a demonstration of Intel Corp.'s originations system in a cubicle well-stocked with Perrier. The cubbyhole was tucked behind a massive stage where Intel representatives hawked other products with the zeal of aerobics instructors.

Intel uses its new Proshare Personal Conferencing Video System 200 to ease the lending process. It is trying to position the product in "embedded applications," as a spokeswoman described it.

That means Intel is looking for highly specific uses for the video conferencing equipment. The company believes that originating home loans fills the bill.

The computer giant signed on Virtual Realty Network Inc. this month to offer a computerized loan originations system using the new technology. Virtual Realty says it will roll out 10,000 units to real estate brokers this year.

Ms. Boukather (virtually) walked me through the system. The Virtual Realty loan originator was in an office in the company's Newport Beach headquarters. Brilliant California sunshine streamed in behind her. I could see a house plant in the background. She brushed her coal-black hair from her eyes often during our conversation.

She showed me the process using forms filled out previously by a fictitious applicant. The first form, asking for background information, appeared on the computer screen.

She showed me how it should be filled out, whizzing a cursor from section to section to highlight categories.

Another form came up on the screen. The lag time was very little.

On this form, salary amount was filled in by me here. Property price there.

Where?

"Right where my cursor is," she said. "Can you see it?"

Now I could.

Ms. Boukather's image looked like freeze-frame video. She would say a word or two and then the image would freeze for a moment. I assume I looked the same to her. The ISDN phone lines can accommodate only so much data.

She pulled up another Microsoft Windows-based screen that presented the loan products available.

In the demonstration, no lender was listed. But Ms. Boukather said soon several lenders would be presented from which the customer could choose.

In all, 25 lenders are expected to be listed on LoanMaker, the official name of the new system.

Once I chose a lender, Ms. Boukather and Virtual Realty would normally get me a quick approval. Then she would call up the lender, and one of its representatives would appear on the screen for three-way interaction.

It takes about the same time to fill out the application as it does in person, said Ms. Boukather, a former mortgage broker. Virtual Realty gets a fee of 50 basis points from the lender for referring the borrower. It does not close the loan.

"That's pretty much it," she said. "Do you need to know anything else?"

"I don't think so. Thanks a lot."

"Thank you," she said. "It was nice meeting you."

"Same here."

Ms. Boukather got up from her seat in front of the computer. Only the California sunlight was left in view.

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