First American Adopts Cloud Computing
The First American Corporation (FAF) is granting Dorado, the provider of Internet-based cloud computing, exclusive global rights to its Web services and mortgage e-lending technology. The transition to cloud computing, across parts of its network, is expected to be seamless, according to Dorado, even in handling the multitudinous changes on the horizon for the Real Estate Settlement Procedures Act (RESPA), the Housing and Economic Recovery Act (HERA) and the Home Valuation Code of Conduct (HVCC) and other home-lending initiatives. "One way to think about this new offering is to compare it to what electronic resource processing (ERP) systems did for manufacturing operations," said Rob Carpenter, Dorado's chief technology offer. "Dorado's new offering is an ERP-like solution for enabling financial institutions to orchestrate all of the electronic data pieces coming into the manufacture of a loan product." Dorado claims that using cloud computing is a more cost-effective way to originate, fund and underwrite mortgages, although some market participants question the feasibility of these systems in general. Cloud computing, itself, is simply meant to be a tool for streamlining operations in any business. As part of the agreement Dorado can also develop First American's technology further. The software assets being covered include: eClosing, eMortgage, Decisioning Engine, eDisclosures, eVault and the Vendor Management Platform. Dorado will also integrate its own ChannelMaster web-based origination platform into First American's operations. First American is a leading provider of consumer and commercial mortgage origination settlement services. Write to Jacob Gaffney. The author holds no relevant investments.