Amid Buy-outs and Close-downs, Direct Mortgage Wholesale Remains Optimistic

PRLog (Press Release) - Jun 12, 2007 -
In spite of precipitous changes that have left the mortgage industry reeling, Direct Mortgage Wholesale (http://www.directmortgagewholesale.com), a mid-sized national mortgage bank, is optimistic.  James Beech, CEO of Direct Mortgage, attributes their strength to three main factors.  Two of those factors are technology related.

Three keys to their success are:

•   Automation allowing them to provide rates competitive with top-tier lenders
•   Better quality loans due to technology aligned with the requirements of secondary market investors  
•   Adapting loan programs to the changing environment

Mortgage lenders create loan programs that meet a variety of borrower financial situations.  The more programs they provide, the better opportunity borrowers have of qualifying for a loan that meets their needs.  Direct Mortgage offers a large portfolio of loan products (http://www.directmortgagewholesale.com/loan_programs.html) and has been able to rapidly adapt its loan programs to meet the criteria of secondary market lenders.  This is important, because if guidelines aren’t met, then an investor will not buy the loan, resulting in the lender having less capital to fund additional loans.  

Coupled to the process of modifying loan program guidelines is inserting those guidelines into Direct Mortgage’s proprietary mortgage software, called DirectWare™ (http://www.directmortgagewholesale.com/mortgage_loan_soft...).  This software includes an automated underwriting system (AUS) that uses the programmed guidelines to underwrite loans in seconds, ensuring that they qualify for specific loan programs.  By rapidly adapting its loan programs and utilizing its AUS, Direct Mortgage helps ensure that brokers submit saleable loans.  

The third factor credited for Direct Mortgage’s success is the automation DirectWare provides.  Automating multiple processes and incorporating the underwriting into the lending workflow reduces DirectWare’s costs and increases its efficiencies, which allows it to provide rates competitive with top-tier lenders.  Great rates are an incentive for brokers to use Direct Mortgage and contribute to its strength.  

DirectWare is available for brokers and other lenders to use, and can help them remain profitable during turbulent times.

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