OpenClose, developers of Web-based, end-to-end mortgage software, has agreed to purchase the assets of Lion (OTC Bulletin Board: LINN) and will continue to operate its Seattle-based Precision LPX suite of mortgage software and retail Web site services.
The transaction is anticipated to close this summer, subject to shareholder approval and regulatory consent.
The acquisition expands OpenClose's existing solutions, which include an end-to-end loan origination software (LOS) and product-pricing engine for mortgage bankers, to include direct consumer and broker lending software. The Precision LPX suite consists of Web-enabled tools designed to help brokers originate, price and lock loans. The expanded services, combined with OpenClose's existing end-to-end LOS, gives lenders and brokers a single tool to handle every task in the loan life cycle from consumer to secondary market.
"OpenClose will give our existing customers continued support to the software they rely on, while also offering additional services to help them automate the mortgage pipeline," said David Stedman, president of LION, Inc. "In addition, OpenClose gains the tools needed to become the first completely Web-based, end-to-end mortgage software that touches all points from the consumer to the investor."
LION, Inc.'s software is scaled to meet the needs of mortgage originators of all sizes. The Precision LPX solution is designed to meet the needs of large lenders. Precision Access and Precision Lion Broker are scaled to meet the needs of mid-sized lenders and individual brokers, respectively. OpenClose will also add LION's retail Web site business, which designs, develops and hosts retail Web sites for more than 1,200 lenders, origination companies and brokers.
"OpenClose will offer completely Web-based ‘consumer-to-end' mortgage software that will provide the most cost-effective way to price, originate, close and sell loans in the mortgage industry," said Jason Regalbuto, president of OpenClose. "We are broadening the horizon of traditional lending software by adding consumers and brokers to the same systems used by lenders in an effort to minimize time spent preparing loans and maximize the security and profitability of those loans."
OpenClose's .web based software supports underwriting, robust core banking operations, closing, post-closing, secondary marketing, funding, shipping and reporting. The software, is offered as a hosted managed ASP solution, allowing wholesale and retail lenders to use the system with originators nationwide.
In addition to the OpenClose LOS, the company also offers lenders Decision Assist, a managed product guideline, pricing and decisioning engine. The program gives lenders a powerful tool to keep up with the rapidly changing investor guidelines in the industry, price the loans and make automated decisions on the loans. Decision Assist, is available within OpenClose or as a stand-alone installation.
"OpenClose is investing in the future of mortgage lending by taking the tools needed to secure pricing, originate and close loans directly to consumers, brokers and mortgage bankers," said J.P. Kelly, chief operating officer of OpenClose Solutions. "While others are pulling back, we are growing and broadening the availability of software that streamlines all aspects of the mortgage supply chain."