Contour Software launches 'Virtual Mortgage Company.'

Real Estate Weekly, Feb 24, 1999

Contour Software, Inc., a Silicon Valley-based provider of mortgage loan software systems for the financial industry, recently launched the Virtual Mortgage Company, a service that handles all aspects of loan origination, processing and closing for mortgage origination companies.

The Discount Mortgage Center, a California-based Internet mortgage origination company, has signed on as the first customer for the service.

The Virtual Mortgage Company (VMC) service can lower the cost of originating and processing loans, as well as costs associated with operating a mortgage company.

"By outsourcing to Contour, mortgage originators can offer borrowers the same advantages as a full-service mortgage company without the overhead, and at a lower cost," said Scott Cooley, president of Contour Software. "VMC eliminates the need for a brick and mortar office and turns the process into a paperless environment up to the point of closing."

VMC offers originators various levels of outsourcing using Contour's services. Contour Internet Services develops a state-of-the-art Web site that quotes loans, pre-qualifies potential buyers and originates a loan on-line, which is quickly forwarded to the originator, to Contour Processing Services, or both. The secure on-line application asks for just enough information to transmit to Fannie Mae or Freddie Mac automated underwriting systems using The Loan Handler software.

When used in conjunction with the Virtual Mortgage Company, Contour Processing Services (CPS) handles all initial contact with the borrower and requests the necessary documentation, which is imaged and placed in a Virtual Loan Folder, into which all subsequent borrower information and documentation is stored. Contour Processing Services prepares and sends out Reg Z disclosures, as well as all verifications for the loan. CPS also orders a credit report, preliminary title report and appraisal. After full processing, the loan is then submitted to the mortgage lender or underwriter of choice.

To provide the mortgage origination company with current information and control during the loan processing stage, Contour Processing Services has a secure Web site (www.processloan.com) at which brokers and lenders can view loan file status reports, download an entire borrower file and actually view any page of the loan file. In addition, CPS has Web site options for the listing Realtor, buyer's Realtor, borrower, underwriter, wholesaler and mortgage insurer. Each of these parties can view information that is only appropriate for them. For example, underwriters can actually underwrite the loan by viewing the Virtual Loan Folder from the CPS Web site. Thus, physical loan files do not have to be sent overnight. All parties in the transaction are far more efficient, and the loan can be processed at a lower cost.

For more information, contact Scott Cooley, at 800-CONTOUR or visit www.contoursoft.com.