This is a system we can easily replicate to help other emerging economies around the world.
Oxford, Mississippi (PRWEB) June 18, 2013
Brazilian mortgage lenders will be able to get home buyers moved in faster than ever thanks to a new workflow system being launched today by U.S. mortgage technology company FNC, Inc.
Last fall, Sao Paulo-based Cetip—Latin America’s largest depository of fixed income securities—selected FNC® to deliver a comprehensive collateral management solution for the Brazilian mortgage industry.
FNC, whose clients are the nation’s major mortgage lenders and servicers, designed a Collateral Management System® (CMS®) that continues to revolutionize the $14 trillion U.S. mortgage market – the largest industry on earth. Now, FNC is applying its time-tested, 13-year knowledge base to the Brazilian infrastructure.
“CMS will streamline the mortgage process to reduce the lengthy time that it takes to process loan applications,” said Buster Hale, managing director of FNC’s Brazilian office. “We’re looking at this project as a pilot program. This is a system we can easily replicate in other emerging economies around the world.”
FNC’s CMS will help to provide increased transparency in the loan process, which will prevent fraudulent appraisals and abuses of the FGTS fund—the primary government fund available to finance home purchases.
“With this increased transparency, foreign investors will be more likely to invest in Brazilian mortgage-backed securities as the secondary mortgage market in Brazil grows over the next few years,” said FNC CEO Bill Rayburn.
Additionally, Rayburn said the CMS in Brazil will be the conduit for building a national collateral database. In the U.S., FNC built the nation’s most comprehensive database of residential property information by blending appraisal data with public record and MSA data. FNC clients can tap into the database to gain extensive knowledge about the properties that support their loans.
“With a similar national collateral database in place in Brazil, desktop appraisals can be done, which will reduce the cost of appraisals to the banks and also to consumers,” said Robert Dorsey, FNC chief of data and analytics. “In addition, analytics will be available to predict trends in the Brazilian real estate market, which are not available today.”
Roberto Dagnoni, executive director of Cetip, is looking forward to the results of the FNC product launch.
“We at Cetip are excited to be partnered with FNC, the technology leader in the residential lending arena,” he said. “Brazil will greatly benefit from FNC’s solutions that have proven so valuable to U.S. lenders.”
Cetip is a publicly held company that offers services related to registration, central registration depository, trading and settlement of assets and securities. Through technological and infrastructure solutions, it provides liquidity, security and transparency for financial operations, contributing to the sustainable development of the market and Brazilian society. The company is also Latin America’s largest depositary of fixed income securities and Brazil’s largest private asset clearinghouse.
More than 15,000 institutions use Cetip’s services, including investment funds; commercial, multiple and investment banks; brokers and distributors; lenders; consortiums; leasers and real estate credit companies; credit cooperatives and foreign investors; and non-financial companies, such as foundations, vehicle dealers, and insurance companies. Millions of individuals benefit each day from the company’s products and services, such as EFT processing and DOC clearing, as well as lien services, bank deposit certificates (CDB) and fixed income securities.
FNC® invented and developed real estate collateral information technology in the U.S. Since the mid-1990s, FNC has offered solutions that automate appraisal ordering, tracking, documentation and review for lender compliance with government regulations. FNC’s clients have realized reduced costs and more efficient loan processing. With its Collateral Management System® (CMS®) and collateral-focused data and analytics, FNC provides advanced insight into the property backing a loan from origination to capital markets. No one understands real estate collateral better than FNC. Visit FNC online at http://www.fncinc.com.
To interview Bill Rayburn, Robert Dorsey, Buster Hale, or any of FNC’s mortgage industry experts, contact:
Bill Dabney, corporate communications manager