HAPPY HOLIDAYS

 

2000 was a very productive year for Mortgage Builder Software Inc. We accomplished the goals we set for enhancements and modules to the software and would like to thank those customers who contributed their ideas and helped make all of this possible. Mortgage Builder Software would like to wish all of you a Happy Holiday and a very prosperous New Year.           

 

INDUSTRY CHANGES

January 2001 starts the mandatory usage of the revised Conventional and VA mortgages, notes, and riders. No changes are required for the FHA versions of these forms. These revised mortgages will eliminate the need for the Mortgage Insurance Rider (Form 3160) as the necessary wording will be contained in the document. Please be aware that the number of pages of the mortgage has increased significantly. A mortgage that was originally 8 pages may now be up to 19 pages in length. This will greatly effect the recording fees collected at closing. In December you will receive a Mortgage Builder update that will contain these revisions.

FHA is making a change that affects all loans closed on or after January 1, 2001. The monthly mortgage insurance premiums will now automatically terminate when the loan reaches a 78% LTV, provided  the borrower has paid these premiums for at least 5 years. The up-front MI factor has been reduced from 2.25% to 1.50% for all programs. In addition, a borrower paying off or refinancing their FHA loan will only be allowed a refund of their UFMIP within 5 years from the date of closing. See Mortgage Letter 00-38 for further information.

 

Mortgage Builder Software Delivers ASP Services to Mortgage Market

Press Release – October 2000

San Francisco – Oct. 20, 2000 – For more than 20 years, Mortgage Builder Software, Inc. (MBSI), a Southfield, Mich.-based mortgage software company, has offered ASP services to its servicing clients. MBSI has introduced to its origination clients, its Windows ASP-based solution through its loan origination system Mortgage Builder. This allows MBSI to offer lenders its complete line of origination products via the Internet, without the need for in-house hardware. Warren, Mich.-based Mortgage Loan Advantage Inc. (MLA), a traditional mortgage lender specializing in loan origination and servicing, has recently implemented Mortgage Builder’s ASP solution.

            As an ASP, MBSI manages and delivers application capabilities to multiple entities from data centers across a wide area network (WAN). This gives customers a viable alternative for procuring and implementing complex systems themselves. Customers can connect to the system through Mortgage Builder via the Internet or direct connection. MBSI maintains the hardware, operating system, database and file backup system. Lenders would not need to purchase server, operating system, database or LOS software. With an Internet connection, implementation time is a matter of days, allowing companies a fast, secure, cost-effective solution.

            “Using MBSI’s ASP system allows MLA increased access to applications that were previously not affordable, while having a service department that matches our customers’ needs,” said Lance Avery, consultant for MLA. “We could not spare the time and expense to search for IT personnel right now, so we began researching an alternative.”

                According to MLA officials, the total cost of ownership is less expensive using an ASP compared to running everything in-house. Ultimately, this allows the company to process loans more cost effectively.

                “We decided to offer an ASP solution because it allows lenders to focus on their mainstay business,” said Keven Smith, president of Mortgage Builder Software. “We are confident that ASP-based solutions are the right choice for lenders looking to enable key portions of their business to operate as smoothly and efficiently as possible.”

                In a study by Zona Research, Inc., of Redwood City, Calif. for the ASP Industry Consortium, most American businesses using an ASP are drawn to the model because of the cost savings and the freedom it gives them to focus on core business issues. The study also indicates that the most important factors in influencing the ASP purchase decision were a reduction in the total cost of application ownership; the ability to focus on achieving strategic business objectives; and the freeing of IT resources to focus on internal mission critical applications.

            Though the ASP market is relatively new, computer industry analysts foresee rapid growth and multi-billion annual sales within the next few years. End users cross industry lines and include anyone from the small office/home office client to large corporations and from complex businesses to specific.

 

 

 

 

Mortgage Builder and the American Red Cross would like to thank all of our customers who helped to make our Blood Drive a complete success. The blood donated helped 66 people to see this  year’s Christmas!

 

WELCOME ABOARD!

 

Mortgage Builder Software would like to welcome five new customers to our software.

 

 

HMAC Mortgage Corporation

Located in Independence, Ohio

MBS Mortgage Company

Located in Southfield, Michigan

Ross Mortgage Corporation

Located in Oak Park, Michigan

SOC Credit Union

Located in Troy, Michigan

Universal Mortgage Corp/Peoples State Bank

Located in Southfield, Michigan