Pegasystems product designed to improve quality controls in loan origination
Pegasystems (PEGA) launched a consumer-lending product designed to help improve quality controls throughout the entire mortgage-origination process. The process-management software company said its product will allow lenders "to automatically eliminate errors and improve productivity in mortgage origination" just as Fannie Mae, Freddie Mac and borrowers begin to demand banks repurchase mortgages allegedly written with missing, false or inaccurate data and documentation. Pegasystems said analysts estimate "lenders stand to lose as much as $180 billion" from the mortgage buybacks, and "some say it has already cost the four largest U.S.-based lenders approximately more than $19 billion," according to the company. Cambridge, Mass.-based Pegasystems said its new product increases transparency and quality control with higher rates of automation that eliminate "risks that arise from manual errors, lag time and time-consuming data entry." Write to Jason Philyaw.