Altisource: An Integrated Approach to Operational Excellence

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John A. Vella, CRO, AltisourceJohn A. Vella, CRO
The mortgage industry of today is faced with a major compression of profit margins due to the rising costs of originating and servicing loans. To keep up with changing times, it is paramount for loan originators and servicers to make relevant decisions at a lower cost while ensuring compliance. To this end, the industry is utilizing multiple technologies for automation, analytics, workflow, and exception-based processing for processing or servicing loans. The mortgage industry has traditionally reached out to multiple vendors with specific solutions for various tasks, causing costs to rise, and the profit margins to drop. In this scenario, Altisource has proven to be the game-changer in the loan origination and servicing space. The Altisource product suite supported by innovative technology easily integrates with originators and servicers allowing them to outsource functions to Altisource. “We have helped our customers to lower their costs and gain efficiencies while optimizing performance and compliance,” says John A. Vella, Chief Revenue Officer of Altisource.

In the origination space, Altisource furnishes Trelix, the company’s full suite of mortgage fulfillment offerings, which delivers loan processing, underwriting, quality control, due diligence, closing, and certification services. “As the fluctuating environment of loan origination makes it difficult to retain underwriting staff, using a provider like Altisource and a product like Trelix allows customers to switch easily from a fixed cost to a variable cost model,” informs Vella.

We aim to advance our clients through their journey of growth, cost management, and increased profits

The company aids customers in lowering costs by cutting down on the need for manual labor and offers a seamless user interface that allows transparency and best-in-class execution for originators.

Altisource keeps pace with the changing marketplace and caters to several customers including servicers, originators, and government agencies. The company uses its wide variety of integrated products in offering asset management services to the marketplace. Altisource combines its title, field services, brokerage, property valuations and online auction products with the Equator technology platform to uniquely position itself as a true end-to-end vendor.

Founded in 2009 to provide simple, efficient, and cost-effective mortgage solutions to its customers, Altisource began by aiding servicers with managing delinquent loans and distressed real estate functions for their clients. Over time, the company expanded through organic growth and acquisitions and started servicing the consumer real estate and origination sectors. In addition to its end-to-end solutions for origination and servicing, Altisource offers online real estate platforms for consumers and investors, works as an aggregator of data, and aids clients in utilizing this data to make effective decisions. The company is built on a backbone of compliance and vendor management, while providing the market with workflow and integration capabilities.

Over the past decade, Altisource customers have used its products and services to lower costs as well as improve client satisfaction and the quality of its product as a whole. “Ultimately, we aim to advance our clients through their journey of growth, cost management, and increased profits,” concludes Vella.

Altisource News

Altisource's Premium Title and Springhouse Launch HELOC Hybrid Solution

LUXEMBOURG: Premium Title, a national provider of title and escrow services, and Springhouse, a full-service valuation solutions and appraisal management company, announced the launch of HomeVal, a home equity line of credit (HELOC) hybrid solution that provides combined title search and valuation data for lenders. Consolidation of title and valuation information in one report can help lenders shorten the amount of time it takes to close a HELOC loan.

Lenders originating HELOC loans often absorb consumer closing costs due to market demands on small balance transactions. HomeVal provides lenders an economical solution to satisfy title and valuation requirements at a lower cost than traditional title insurance policies and property appraisal reports.

Key features of HomeVal include:

• Tier I: Express – Provides estimated value, confidence score, last sold price and date, assessed value and year, current owner and full legal description.

• Tier II: Full – Provides features included in Tier I: Express, plus historical listing and sales information, sales comparable details, market analysis, property photographs and property taxes.

• Tier III: Complete – Provides features included in Tier II: Full, plus manual review of comparable selections to ensure property characteristics are relevant to the subject valuation and a full report of monetary liens recorded after the first mortgage.

“We are in a unique position to leverage two Altisource businesses, Premium Title and Springhouse, and provide a unified solution to support the HELOC lending market,” said Ben Hall, Vice President, Premium Title. “Receiving title search and valuation data in one report, at a low-cost and in a timely manner, helps lenders to be more efficient in underwriting HELOC loans. We continue to listen to and anticipate the challenges that arise for our customers.”

Altisource Launches Bundled FHA Product

LUXEMBOURG: Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ: ASPS), a leading provider of real estate, mortgage and technology services, announced the launch of its bundled FHA product which provides customized asset management services for delinquent FHA loans.

According to the Altisource “State of the Servicer Industry” report, 86 percent of servicing professionals surveyed cited that their organization currently services FHA loans. Nearly three-quarters (72 percent) expect their FHA loan portfolio to increase over the next 12 to 24 months and 77 percent expect the increase to be more than 25 percent. As servicers know, servicing FHA loans comes with the risk of being required to convey foreclosed FHA assets back to HUD, increasing the cost and fees to service FHA loans. Utilizing an experienced vendor with broad asset management solutions for delinquent FHA loans enables a more cohesive process to help mitigate these risks.

Altisource’s FHA offering typically begins with asset oversight at the 60-day delinquency mark and extends through the first Claims Without Conveyance of Title (CWCOT) sale and, if required, the second chance sale. Utilizing Equator, Altisource’s residential loan default software and marketing solution, Altisource can help servicers manage the asset marketing and conveyance process (including field services, valuations, title services, online marketing and auctions) from one place. In addition, the Equator® platform includes a proprietary FHA model that leverages the data feeds and workflows to help optimize outcomes for servicers.

The features of the FHA Modeling Tool include:

• Market Analysis – Provides comprehensive data for assets under management, allowing for re-optimization throughout the post-sale lifecycle.

• Forecasting – Indicates the estimated cost of conveyance and holding timeline to compare various disposition processes and outcomes, including potential servicer contributions.

• Actionable Data – Displays percentages of profitability and potential gain/loss for each potential decision based on current market data.

• Records – Stores a history of multiple model outputs in one location to keep record of an asset containing all modeled values, user edits for tuning, strategy decisions and commentary for collaboration on execution.

“Now is the time for servicers to review their internal capabilities and ensure they engage the best and most experienced vendors to effectively prepare for a growing FHA portfolio,” said Patrick G. McClain, Senior Vice President of Equator and Hubzu Auction Services for Altisource. “Our FHA modeling tool, in combination with the bundled Altisource FHA products, offers servicers the potential to mitigate some of the costs and risks associated with conveying assets back to HUD, and view the status and results through Equator.”