FNC Inc. has launched a Web-based technology platform through which banks and investors can buy and sell mortgages. Dubbed the FNC Clean Room, the technology makes loan trading more efficient and transparent by turning the loan file into structured data that can be easily analyzed. Additionally, the FNC Clean Room streamlines connections between buyers and sellers, which enables both parties to expand their business and increase revenues.
“Up to this point, FNC has developed great software and analytical tools for evaluating loan collateral, and the FNC Clean Room will apply those same skills and experiences to the entire loan,” said FNC CEO Bill Rayburn. “Over the years, we have witnessed inefficiencies in how loans are bought, sold, and transferred between banks and institutions. The FNC Clean Room will help to eliminate those inefficiencies.”
Originators can use the FNC Clean Room to more efficiently deliver loans to investors, reducing funding times and mitigating the risk of error. Investors can use the FNC Clean Room to efficiently extract the data needed from scanned loan files and process defects. Capital market entities can use the FNC Clean Room to acquire mortgages, sell mortgages, and securely share mortgage data and documents with their approved due diligence vendors.
“Select clients are already using the FNC Clean Room in their businesses today and are experiencing numerous benefits, such as bulk dispositions of performing and non-performing loans,” said Clark Love, managing director of MortgageTrade, the division of FNC responsible for the FNC Clean Room product line. “Others are using it to acquire loans from correspondent banks or to sell jumbo loans to Capital Markets investors.”
In addition to its above described functionality, the FNC Clean Room also delivers a number of other unique services:
►Extraction of data from the “signed” scanned loan file into industry standard (MISMO/ULDD) formats
►Automated identification of missing required documents in the loan file
►Application of validation rules that automatically identify defects in the loan
►Secure transfer of the mortgage file and data between buyers and sellers
►Long-term online access to the loan file for the life of the loan
The FNC Clean Room does not replace the underwriting/review process, but it does enhance it and make the initial evaluation of mortgage loans more efficient.
“Both the regulatory environment and mortgage investors require unprecedented transparency and risk review today. The FNC Clean Room provides transparency by collecting the data, standardizing it, and making it available in a very easy to use, Web-based platform,” Love said, adding that the FNC Clean Room also provides new proprietary technology for extracting data from scanned loan documents, making it more cost effective to pull data from the signed loan documents.