OXFORD, Miss., Oct. 3 /PRNewswire/ -- With its new collateral-focused
analytics, FNC, Inc. arms mortgage lenders with decision-making tools for
the life of a loan, from origination to review to capital markets.
Branded as Collateral DNA, these descriptive and predictive analytic
products use a rich database of appraisal and public record data to quickly
deliver accurate information and scores on a particular market, property
and vendor, said FNC's Chief Operating Officer Robert Dorsey.
"Delivering these analytic tools has been part of FNC's corporate
strategy from the beginning," Dorsey said. "Over the years, we've worked to
build the National Collateral Database, which recently reached critical
mass and empowered us to build these products. We think Collateral DNA is
It takes two numbers to make a loan: a credit number on the applicant,
and a collateral value for the property. Before the nation's top lenders
implemented FNC's Collateral Management System(R), collateral information
had been slow, unwieldy, and sometimes unreliable. The CMS(R) reduced
warehouses of appraisal forms into simple XML data streams, speeding
origination, review and servicing.
Through its collection of vast amounts of appraisal data -- millions of
appraisal reports pass through the system every year -- CMS fuels FNC's
collateral-focused data and analytic products. The National Collateral
database blends public record and real estate sales information with
real-time appraisal data, the gold standard of collateral valuation, making
FNC's analytics more accurate and up-to-date, Dorsey said.
FNC's clients, which include more than 25 of the nation's top mortgage
lenders, have already implemented some Collateral DNA solutions. Many now
use FNC's Appraisal Score to make appraisal review even more efficient and
focused. The Appraisal Score delivers automated collateral underwriting in
the form of a simple score and a report that directs the underwriter to
potential valuation pitfalls.
Much like a FICO credit score, the Appraisal Score ranges from 0 to
1,000, with 1,000 being a perfect score. The lower the score, the more
troubling the valuation.
FNC developed the Appraisal Score by weighting its Generally Accepted
Appraisal Rules(TM), which automatically review appraisals using more than
450 rules to screen for regulatory compliance, compliance with Fannie Mae
and Freddie Mac standards, potential overvaluation or inconsistencies in
"Appraisals have always been scored using an outdated, manual review
process," said FNC Data Operations Manager Steve Costello. "Now, FNC's
Generally Accepted Appraisal Rules and the Appraisal Score make appraisal
review fast, accurate and automated."
FNC Chief Executive Officer Bill Rayburn said the strategy for
Collateral DNA is simple -- give lenders the tools they need to profitably
fund loans in what he calls the new "Collateral Era."
"Credit-based data and analytics saved lenders so much time and money
that they could afford to make more loans with less risk through a fairer,
quicker and more profitable process," Rayburn said. "Everything changed.
Data and analytics became the standard for assessing credit impacts on
loans. At FNC, we're completing the efficiency revolution by doing the same
Other Collateral DNA products bring more efficiency to the process.
- Easy Price Opinion (EPO), a Web-based application useful for equity
loan production, offers interactive maps and comps backed by FNC
analytics and Fannie Mae guidelines.
- Data Express allows fee or staff appraisers to auto-populate their
appraisal forms with the best comps, complete with transaction
histories and plat maps.
- Loan Pool Valuator features an easy-to-use interface tool that
validates the valuations of all loans in pool, useful in correspondent
lending, servicing and capital markets.
Collateral DNA Product Manager Jocelyn Atkinson said many more
prototype products are being tested, researched and developed. She works
with a team of developers, designers, and data experts to harness the power
of the National Collateral Database.
"Our challenge is to take this incredible resource -- our data -- and
deliver analytic tools that make sense for lenders," Atkinson said. "A rich
data source means we have endless possibilities. We rely on our lender
clients for feedback and strategic direction.
"What do they need most? What will make them more efficient? How can we
streamline the process?" Atkinson said. "It's not an over-the-top claim.
Collateral DNA is an efficiency revolution for mortgage lending."
About FNC, Inc.
Headquartered in Oxford, Miss., FNC pioneered real estate collateral
information technology. Since 1999, FNC's Collateral Management System(R)
(CMS(R)) has streamlined mortgage operations by converting paper to data to
knowledge. FNC's success positioned the company at No. 154 on Inc. 500's
list of the fastest growing private companies in America in 2004. As the
mortgage market enters the age of collateral, FNC will continue to provide
the data and analytics to help lenders make informed decisions. Visit FNC's
Web site at www.fncinc.com.
For information, contact:
Phone 662/236.2020, ext. 258
SOURCE FNC, Inc.