Dorado to Create the First Cloud Computing Platform for Access and Analysis of Information Services in Consumer Lending
Dorado Corporation, a leader in Internet-based consumer lending technology, today announced that it has been granted worldwide, perpetual, irrevocable, exclusive rights from The First American Corporation (NYSE: FAF), the industry's largest provider of business information, for First American's Web services and e-lending technology.
Dorado will combine First American's technology with its own advanced transaction processing technology and leading-edge enterprise operations to create the first cloud computing-based system designed to facilitate the mortgage and consumer lending process. The new cloud lending transaction platform will enable financial institutions to intelligently access key data and analytics from third parties and perform unique analyses that can be bundled with loan information to ensure compliance, data quality and process transparency.
Institutions can use the same platform to help minimize defaults on existing consumer loans and to respond quickly to new government programs, such as Hope for Homeowners, the Housing Assistance and Recovery Program (HARP) and others, aimed at keeping people in their homes. Significantly, one of the nation's largest retail lenders has committed to using Dorado's new cloud-based lending services platform.
Most lending is now done with very limited data accessed by hand, fax, proprietary static or "dumb" portals, or through expensive direct integration with a single data provider. In contrast, the new Dorado system is a robust, single source of electronically delivered information and services that is open and can be used to collect and collaborate on information from thousands of disparate sources in real-time. The platform provides an agile and secure environment in the cloud for lenders to develop their own analytics and collaborative workflow for any need, such as data validation, fraud detection and case file workflow management.
The consolidated system is expected to make it easier, faster and less expensive for lenders to enact rule changes in their lending processes, including the handling of complex updates to comply with local regulations as well as with RESPA, HERA, HVCC and other home-lending requirements.
"This new cloud-based transaction platform represents a significant change from the way information in consumer lending has traditionally been delivered, creating an efficient and centralized platform through which all data and services are accessed and used by financial institutions, investors and regulators," said Dain Ehring, chief executive officer of Dorado.
Ehring noted that many lenders now have no choice but to pass the costs of new regulatory burdens to the consumer. By providing a single platform capability for the management and orchestration of data and services, Dorado makes it easier, faster and more cost-effective to originate, fund and validate a loan.
"This will also make it easier to address and modify existing loans if needed, which is a win for the bank and a win for the consumer," Ehring added.
The agreement provides Dorado with the perpetual right to use, sell, advance and further develop First American's technology. First American software assets covered in the agreement include:
- eClosing: automated loan closing process over the Web
- eMortgage: standards-based document exchange over the Web with tamper-seal evidence for sensitive documents; supports e-signing and investor delivery
- Decisioning Engine: a custom rule engine that supports rules related to such items as vendor selection, product selection, eligibility, entitlement and pricing
- eDisclosures: Secure Web-based delivery and approval of disclosure documents
- eVault: Secure storage of electronic notes
- Vendor Management Platform: a service-oriented architecture (SOA) platform-as-a-service that features intelligent order management, routing and distribution, and includes access to the lending industry's outsourced vendors spanning flood, title, credit, valuation, loan quality check, mortgage insurance and address validation services over the cloud
Among other benefits, the agreement enables seamless integration with First American products and services, providing lenders with the option of an end-to-end system for processing technology and services in a single transaction bundle. Moreover, the agreement lays out a blueprint for further integrating Dorado's ChannelMaster Web-based loan origination solutions with First American's Web Services Platform. Currently, First American provides settlement services representing approximately 90 percent of all consumer and commercial mortgage origination transactions.
"First American's Web Services agreement with Dorado further demonstrates our commitment to creating a better, more efficient and higher quality mortgage lending process using the Web," stated Parker S. Kennedy, chairman and chief executive officer of The First American Corporation. "Dorado's 11-year history of success in enterprise cloud computing and solutions delivery in the highly complex mortgage transaction world makes them an ideal partner to advance our platform into greater functionality, performance levels and market reach."
"One way to think about this new offering is to compare it to what electronic resource processing (ERP) systems did for manufacturing operations. Dorado's new offering is an ERP-like solution for enabling financial institutions to orchestrate all of the electronic data pieces coming into the manufacture of a loan product," elaborated Rob Carpenter, Dorado's chief technology officer.
Dorado further announced that it has teamed with First American's Information Solutions Group to identify and develop market opportunities for the new cloud-based lending services platform.
About The First American Corporation [NYSE: FAF] (www.firstam.com)
The First American Corporation is a FORTUNE 500® company that traces its history to 1889. With revenues of approximately $6.0 billion in 2009, it is America's largest provider of business information. First American combines advanced analytics with its vast data resources to supply businesses and consumers with valuable information products to support the major economic events of people's lives, such as getting a job, renting an apartment, buying a car or house, securing a mortgage and opening or buying a business.
The First American Family of Companies, many of which command leading market share positions in their respective industries, operate within five primary business segments, including: Title Insurance and Services, Specialty Insurance, Information and Outsourcing Solutions, Data and Analytic Solutions, and Risk Mitigation and Business Solutions.
About Dorado Corporation (www.dorado.com)
Dorado Corporation is a leading provider of collaborative cloud computing applications and architecture to the financial services industry. The company offers fully automated on-demand solutions for managing and tracking complex integrations and data-intensive transactions for financial institutions. The company's marquee Enterprise Lending System encompasses the ChannelMaster™ mortgage loan origination system and PriceMaster™ pricing engine, enabling financial institutions to run and centrally monitor the consumer lending process from lead generation through post-close. Along with the benefits of cloud computing applications—increased functionality and dependability with minimal capital costs, flexible configurations, rapid deployment and agile performance—Dorado's customers also gain competitive advantage via production workflow enhancements, better control over the product mix and built-in compliance. The company's pay-for-performance model also provides a more predictably priced alternative to single-point solutions, closed systems and internal development. The company was named a "Hot Banking Technology Company to Watch" by Forrester Research in 2009, and has been a Top 50 Mortgage Technology Provider since 2005. Dorado's customers include tier-one mortgage lenders, leading regional banks and growing financial institutions in the U.S. and Canada.
Contacts:
Dorado Corporation
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Sr.
Director, Marketing & Communications
mediarelations@dorado.com
or
MacMillan
Communications
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Public
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