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A "Flight to Quality" in Mortgage Market
Leads to 36% Applications Growth for Dorado Customers
Declines by subprime specialists coincide with substantial growth
in transactions for blue-chip lenders who use Dorado solutions
San Mateo, Calif.—April 17, 2007—While the lending industry, the media, and indeed even the general public are increasingly aware of the troubles affecting the subprime segment of the mortgage origination market, an accompanying shift toward higher quality loan programs offered by “brand name” national and regional lenders has been less well noted, but is revealed in usage measurements taken on Dorado point of sale solutions, the company announced today.
As the financial difficulties of subprime lenders have worsened, borrowers and originators have turned increasingly to mainstream, trusted sources for their loans, according to the Dorado data. The result has been a rapid rise in the number of loans created on point of sale solutions provided by the company, whose business is focused mainly on serving large and mid-sized institutions with prime, Alt-A, or full-spectrum programs. Overall usage of Dorado’s systems was 36% higher during March than just one month earlier, based on number of loans created. Individual lenders on Dorado’s network have experienced from 24 to 79 percent increases from the close of 2006 to the present time.
A combination of several factors explains this growth:
- Borrowers, now wary of “exotic” programs, are returning to more traditional mortgage products and to trusted lender brand names;
- Originators look to lenders who provide predictably good service, convenience, a broad program selection, and quick decisions—all on-line;
- Lenders have gained experience with web-based solutions like those from Dorado, and are generating more of their business on-line;
- The distinct advantages of Dorado’s Unified Point of Sale solutions allow its customers to better serve originators, streamline production, and rapidly respond to changing market conditions.
“Great companies do well even when markets shift and create uncertainty,” said Dain Ehring, Dorado’s chief executive officer. “In the current market, blue chip lenders’ commitment to quality is being rewarded in real-time. Dorado values our partnership with such lenders and shares their commitment.”
Dorado’s ChannelMaster® product helps lenders implement a Unified Point of Sale, providing centralized viewing and control of all loans from all channels, and also brings back-office processes and information forward to the point of sale, enabling real-time status, decisioning, and service ordering. By breaking down technology, process, and management “silos” in a lender’s enterprise, workflow is dramatically streamlined.
ChannelMaster is complemented by Dorado PriceMaster®, a networked product catalog and pricing engine. PriceMaster allows lenders to bring new programs and pricing changes to market rapidly; quickly determine correct pricing for any loan; offer programs through multiple channels, and prevent predatory, fraudulent, or discriminatory pricing. With PriceMaster, program selection and pricing are put toward serving customers, rather than just managing risk.
Dorado Corporation
Dorado Corporation is the only Enterprise Lending Automation company that gives banks a Network to streamline the loan process from start to finish. Targeting large and emerging lenders in the United States and Canada, Dorado’s collaborative environment connects data and documents with practices and people, enabling over 350,000 lending professionals to increase productivity and better serve their customers. Leading lenders including Countrywide, Chase Home Finance, Washington Mutual, GMAC Mortgage, PHH Mortgage, GreenPoint Mortgage, First Horizon Home Loans, Fifth Third Mortgage, Everbank, Union Bank of California, PNC Consumer Services, and Aegis Home Equity have adopted Dorado solutions. See www.dorado.com.
Copyright © 2007 Dorado Corporation. All rights reserved. The Dorado logo, ChannelMaster, and PriceMaster are registered trademarks of Dorado Corporation. Other company and/or product names may be trademarks or registered trademarks of their respective companies.
Press contact:
Mike MacMillan / Chris Sullivan
MacMillan Communications
212-473-4442
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