Portellus, Inc., one of the more recognized names in the mortgage technology space, said today that it will wind down its mortgage technology business amid "declining market conditions." From the company's press release, posted on its Web site:
After assessing the market's technology buying landscape over the next 18 to 24 months, Portellus elected to discontinue its mortgage business and instead focus efforts on more promising BRMS prospects. Company officials stated that it is in the process of conducting a divestiture of its mortgage technology operations and will be holding an auction for its intellectual property and other assets. Portellus' modular mortgage solutions framework includes: a web-based Loan Origination System (LOS), a Product and Pricing engine (PPE), an Automated Underwriting System (AUS), an Integration Services Hub (PIXMO), and point-of-sale (POS) portals for the Broker, Retail and Correspondent lending channels
Portellus was recently recognized as one of the top 50 mortgage technology companies, in the July 2007 issue of Mortgage Technology. The company's decision to exit underscores that the mortgage slump will have broad impact on the industry, especially for niche technology players focused solely on the loan origination market. That being said, I recently spent time with some attendees at the Five Star Default Servicing Conference and Expo being held this week -- I helped organize last year's event -- and it's clear that for many niche default management technology providers, demand for their solutions has never been better. Operations like DRI Management Systems are booming.