Lehman Brothers is to implement Texas-based ARC Systems' automated underwriting engine, LT2k in its mortgage securitisation business. The system will enable the investment bank's whole loan trading desks in mortgage-backed securities trading to purchase mortgage loans based on a consistent set of quality/risk controlled guidelines.
Arc Systems claims Lehman is the first major Wall Street firm to endeavor to replace a manually arduous process with automation, paving the way for a potential 20 per cent annual increase in the volume of acquisitions.
"LT2k decisioning technology can shorten the time for securitisation of loan pools, reduce risk and enhance profits for lenders and investors alike," says Ed Jones, president and CEO of ARC Systems.