Toronto-based financial technolgy firm Basis100 is to launch a loan processing utility targeted at small to mid sized mortgage lenders in the US market.
To new company will leverage Basis100's core products, including BasisXpress, BasisXchange, and Data Warehousing and Analytics solutions, to provide real time decision support to the mortgage process.
The technology will be offered as an ASP model and will cover hardware, infrastructure and maintenance costs. Basis100 says lenders that outsource loan processing and capital markets services will require minimal capital outlay and only pay a transaction fee based on the successful fulfillment and closing of loan.
Basis100 says it will deploy the system as a complete turnkey service to lenders through the creation of a subsidiary company, due to be launched in Q1 of 2003, and by potentially forming a joint venture with other industry consortia, associations and cooperatives. The latter would be based on the CanDeal model, the fixed income marketplace developed in association with Canadian investment firms, in which Basis100 received an equity stake in return for supplying the core technology for the venture.
Joseph Murin, COO for Basis100, says the biggest challenge facing mortgage companies today is the enormous cost of deploying technology effectively: "Basis100 can help lenders mitigate this risk and will deploy the technology, operate the systems and build the culture that drives the benefits of scale, speed and cost reduction to the lending community."