Home Equity LOS Provider Adds Interim Servicing

Home Equity LOS Provider Adds Interim Servicing

Home Equity Lending News
by Paul Hughes

A new interim servicing system launched by the provider of a loan origination system enables home-equity lenders to manage loans until they are sold into the secondary market.

Blue Sage Solutions, which until now was in the LOS business, announced the servicing platform’s launch Tuesday.

In addition to first liens, the platform can be used for closed-end seconds and home-equity lines of credit, which are similar to servicing first mortgages, David Aach, chief operating officer of the fintech, said in an interview with HELN.

It’s an interim servicing system for lenders to use until loans are sold. It replaces an onerous and “pretty labor-intensive manual” approach with a tech-based one. A loan typically stays on the platform for one or two payments, but there are no time limits.

“Not only does it have to be easy,” said Aach, “but it has to be a lot easier than what they’re doing today.”

Aach said the new platform gives lenders a foundation to fashion their own systems and “make it their own.”

“They’re trying to build long-term relationships, mine the data, run email campaigns,” Aach told HELN in an interview. “Lenders building their own analytical platforms — we think it’s very important.”

Blue Sage developed the platform over roughly three years “from the ground up.”

It works with any LOS, but communicates best with Blue Sage’s system “because we know the data is complete and accurate,” Aach said.

About half of Blue Sage clients use its LOS for second-liens; some use it only for that, and for piggybacks.

The service is “priced to pass the cost-justification test for the alternative, which is doing it manually,” he said. This includes costs to add and remove loans, and “a couple dollars per month, per loan” for the work.

Blue Sage expects its “first client will be in production around the end of Q1, beginning of Q2,” Aach said.

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