Brian Fitzpatrick has had a vision for an automated mortgage business since the 1990s, and he’s spent the majority of his career striving to make that happen.
LoanLogics is a two-year-old company formed by the merger of NYLX and Aklero Risk Analytics, where Fitzpatrick had served as CEO since 2009. Aklero was a one-client startup looking for an industry leader to come in and take its tech-enabled quality control platform – built by Fitzpatrick – to the next level.
NYLX’s pricing engine technology was the answer.
“I saw a very significant hole in the market relative to correspondent lending,” he said. “All of the technology I built was about automating the document processing side of correspondent lending and loan quality management. We needed a pricing engine, and NYLX had it. We could connect the pricing engine with our back-end loan quality and due diligence, build a portal and integrate pricing.”
LoanLogics offers document-processing technology and automates the loan quality process from start to finish. Earlier this year it released the LoanHD investor module for correspondent loan acquisition. The software-as-a-service and portal technology automates several critical processes spanning the correspondent application workflow and the approval process, management of the transaction, loan funding and servicing on-boarding.
The portal automates every step in the loan acquisition workflow, from initial pricing and the creation and management of commitments, through locking and hedging, classification and data extraction of submitted loan documents, closed loan file eligibility and pre-purchase review, and ultimately loan funding and on-boarding.
Fitzpatrick said investors and correspondents will realize improved efficiencies, address loan defects before purchase, and fund loans more quickly, a significant improvement over a “stare and compare” manual process.
“We’ve helped lenders identify risk in a more cost-effective manner, and the risk naturally comes down when you’re able to understand it,” he said. “You can see more aspects in what I call HD (high definition), seeing things you haven’t seen before.”
The Trevose, Pennsylvania-based company worked closely with Texas Capital Bank, the largest wholesale lender in the country that became the first to license the module for the launch of its new correspondent division.
“What we saw just with Texas Capital Bank was essentially a convergence to create the industry’s first automated correspondent lending acquisition platform,” he said, adding the successful rollout at Texas Capital Bank has spurred a number of additional orders for the platform.
Fitzpatrick said that automation of loan quality and transactions is needed now more than ever with additional regulations making lending both more difficult and safer.
“The key thing is not only bringing quality and transparency, but bringing return on investment,” he said.
Looking ahead, Fitzpatrick said LoanLogics will continue to proliferate the marketplace with its technology, bringing its platform “to every buyer and seller of loans to really produce quality.” The company is rapidly growing and adding a large number of new clients every month, he said.
Fitzpatrick has a proven track record of turnaround and growth with various technology and services companies in the financial services space. Prior to Aklero, he served as president of Lydian Technology Group, a provider of business infrastructure and integration technology for the mortgage industry. He also held executive positions at WellFound Decade Corp., Decade Systems Corp. and GHR Systems.
“Throughout my career, I’ve been asking ‘Where are we missing the ball relative to automation in the space?’” he said. “It’s been rewarding to see it come together. It’s been a vision for a very long time and I’ve been executing on that vision in phases. We continue to move down the food chain and we’re getting ready to announce a servicing QC module for the serving side.”