Financial Industry Computer Systems Inc. (FICS), a mortgage technology specialist that provides in-house residential origination and servicing technology and commercial servicing technology to the mortgage industry, announced the successful implementation of Mortgage Servicer at Mesa, Ariz.-based Cascade Financial Services.
Cascade Financial Services is a full service mortgage bank that specializes in providing land/home-lending solutions for the manufactured housing industry. The company had a goal to move away from delivering loans on a flow basis to financial institutions that purchase loans on a correspondent basis. This enables the organization to be completely independent of secondary investors utilizing its status as an issuer of Government National Mortgage Association (Ginnie Mae) securities. At the time Cascade Financial Services did not have an in-house servicing operation and in order to be a Ginnie Mae issuer, an organization must have servicing capabilities or outsource the servicing to a third party. Cascade Financial Services realized that in order to successfully meet its goal of becoming independent of secondary investors it needed to establish a servicing division and implement an automated servicing solution that would not only automate the servicing of its loan portfolio but also have the ability to report directly to Ginnie Mae's Reporting and Feedback System (RFS). Cascade Financial Services selected FICS' residential mortgage servicing system to serve as the backbone of its servicing operation because of its ability to meet its specific requirements.
"Moving away from secondary investors was a critical part of our business plan," said George Dover, CEO of Cascade Financial Services. "Secondary investors are very particular when it comes to Manufactured Housing. Due to this niche we operate in being able to securitize our retail originations through Ginnie Mae and the ability to service those loans was critical to us."
"The reporting standards for Ginnie Mae are very complex and if it is not done correctly, our standing with Ginnie Mae would be in jeopardy," continued Dover. "We selected FICS because of their ability to interact with Ginnie Mae, their ability to comprehensively answer our questions and because they have clients that are successfully using the Ginnie Mae reporting feature in Mortgage Servicer. We couldn't remain in compliance with Ginnie Mae and meet the reporting requirements they have without the Mortgage Servicer software. FICS' platform seems to be best suited for mortgage bankers that are also Ginnie Mae issuers."
The Mortgage Servicer system includes Radstar, a Report And Document Storage And Retrieval system, which provides Cascade Financial Services with the tools necessary to easily produce reports and move towards a paperless mortgage operation. "I recently performed an audit of our servicing department and used Radstar to monitor the reports and documents that had recently been generated," said Dover. "Radstar is a critical piece of the servicing platform."
"Having the Ginnie Mae investor reporting feature embedded in Mortgage Servicer enables Cascade Financial Services to report to Ginnie Mae without having to perform any customization and continue to remain in compliance with Ginnie Mae's reporting requirements," said Susan Graham, president of FICS. "The feature makes for a more efficient and resourceful servicing solution and provides Cascade Financial Services with the solutions needed to succeed in todays challenging environment."