LoanLogics has acquired the assets of Parker & Company, a provider of risk management solutions in the mortgage industry. “The acquisition is strategic because it enables us to move LoanDecisions more deeply into the secondary market,” said Brian K. Fitzpatrick, president and CEO of LoanLogics. “It’s an investment that advances the capabilities of LoanDecisions to meet changes in the mortgage market. It gives us additional capability in the secondary marketing and risk management side of the business.”
LoanDecisions is an eligibility and loan pricing solution that delivers accurate, real-time investor pricing and eligibility data.
“This transaction enables LoanLogics to broaden its product base and mortgage industry expertise. The aim is to combine proven products to create a better customer experience. LoanLogics’ commitment to listening to and meeting each customer’s need holds great appeal to me,” said Les Parker, who will report to Fitzpatrick and assist him in strategic initiatives and growth of the business. “As a Master CMB I am committed to doing mortgage banking the right way. My vision fits with Fitzpatrick. We both see the need for investor, customer and regulator confidence to soar. It will when loans are manufactured right, managed right, analyzed right and monitored right. Investors compete for customers they understand and have validated data to support quality analytics, which means lower rates for the consumers.”
In addition, the acquisition of Parker and Company’s key assets ensures that LoanLogics will have the technology and expertise necessary to support clients in a rapidly changing servicing environment. Parker, said, “Customers and their regulators don’t want black box answers. They want analytics where the results and inputs can be explained and understood. They want powerful pictures of risk to gain support for change.”
There is a significant amount of regulatory pressure on larger institutions, relative to the amount of servicing they hold and the increased capital requirements that are required. As a result, many are divesting portions of their mortgage servicing portfolios--and smaller and midsize companies are acquiring it.
“They need tools to be able to value their mortgage servicing rights and we anticipate significant growth in that area because more firms are in the business and there will be an increase in transactions as a result,” said Fitzpatrick. “As they acquire more servicing, they have more analytical needs relative to MSRs, and LoanHD is a performance analytics platform that will track and measures risk for them.”