The $47.1 billion-asset Sovereign Bank of Wyomissing, Pa., is taking advantage of the mortgage slowdown to overhaul its origination system.
UniFi Pro Mortgage eX software from Fiserv Lending Solutions of Lake Mary, Fla., which the thrift plans to begin introducing by November in some operations, will eliminate re-keying of data and switching between systems. It will also enable Sovereign's wholesale mortgage lenders, such as brokers and correspondents, to register new loans online and lock interest rate quotes automatically.
The system also can order appraisals, credit reports, and other documentation. Eventually it will enable customers to apply online for a mortgage from the Sovereign Web site.
The thrift, whose holding company is Sovereign Bancorp Inc. of Philadelphia, considered an upgrade for two or three years but got "caught up in the refi bubble," said senior vice president Gary L. Gordon, its mortgage underwriting manager.
"We couldn't see doing a conversion during the record years of 2002 and 2003," he said. But now, with loan volume falling, "we want to roll it out" quickly.
One reason is to prepare for a resurgence in mortgage demand, Mr. Gordon said. He expects the slump to be temporary.
Mortgage interest rates are still extraordinarily low, Mr. Gordon noted, and "we don't think the rates are going to change much over the next year or so - so we anticipate activity will pick up."
The thrift signed a licensing agreement with the Fiserv Inc. unit in March. It plans to start using the software in November in its wholesale originations group.
A staged rollout to branches would begin next January. The Internet capability could be introduced later next year, Mr. Gordon said.
Details of the timing will depend on two pending acquisitions, he said. This month the thrift expects to buy Seacoast Financial Services Corp. of New Bedford, Mass., which it would convert it to Sovereign systems in October. In the fourth quarter it expects to buy Waypoint Financial Corp. of Harrisburg, Pa., whose systems would be converted early next year.
Sovereign also uses a Fiserv system to service its mortgage portfolio, but Mr. Gordon said the integration of origination and servicing systems was "a bonus," not a controlling factor in the purchase decision.
