Most Popular Searches

Tech-savvy lender builds LOS, now integrating with Day 1 Certainty

April 3, 2017 | By

It’s unusual for a small to mid-sized lender to have their own in-house loan origination system (LOS). Most use a LOS developed by outside vendors.

But 400-employee, privately-held Mortgage Network built its own technology to originate, sell, and service loans. It’s an investment in technology that lets the Danvers, MA-based lender design and customize its technology to exactly fit its needs.

How It Started

Mortgage Network started building its own modules around their LOS provider in 2001. And it created data bridges to transfer data between these modules and their LOS. It began this process with the secondary market, building a full hedging and mark-to-market system with its own pricing engine.

It continued to build additional technology modules and bridges over the years. But in 2009, their LOS provider announced it was retiring their legacy platform and migrating users to new technology.

Mortgage Network was unsure how that move would affect its technology. “We had so many modules built around their LOS that we were only using it for taking the application, pulling credit, and running Desktop Underwriter®,” says Carlos Sa, the company’s chief technology officer. “Moving to the new technology would have forced us to give up a number of our modules.”

So instead they built their own LOS.

Read more: Fannie Mae delivers on ‘Simplifying Servicing’ at MBA

It turned out to be a good decision, notes Sa. Having proprietary technology has allowed for fast and efficient upgrades based on input from front-end loan officers who communicate with IT directly.

Day 1 Certainty Integration

Mortgage Network is currently piloting an online portal. The LOS takes a potential borrower through a series of questions and returns the best available scenario for that particular borrower.

The lender expected the system to be fully operational by the end of March. It is integrating the portal with the Fannie Mae Day 1 Certainty™ offering for asset validation. This integration will allow for asset validation through one of Fannie Mae’s approved asset verification report suppliers.

Read more: Fannie Mae offers freedom from representation and warranties (R&W) with ‘Day 1 Certainty’ Initiative

“Our online LOS portal connects directly to the borrower, whereas other LOSs have the asset and income checked via a back-office feature, after the application is taken,” Sa says.

“When a borrower is on an actual online mortgage portal, they may feel more comfortable to either download their bank statements or type in a password for Mortgage Network to read the statements,” Sa says. “We show the borrower online what we are doing with the information and the applicant can choose what to share or not share with us.”

Of course, Sa is quick to note that developing and updating proprietary technology entails time and expense. Still, he believes the benefits have outweighed the drawbacks.

“We’ve always been very nimble,” Sa says. “We can make any changes we want quickly and can make things exactly the way we want them. There are very few limits in terms of what we can and cannot do.”






We appreciate and encourage lively discussions on our websites’ content. While we value openness and diverse points of view, all comments should be appropriate for people of all ages and backgrounds. We do not tolerate and will remove any comment that does not meet standards of decency and respect, including, but not limited to, posts that:

  • are indecent, hateful, obscene, defamatory, vulgar, threatening, libelous, profane, harassing, abusive, or otherwise inappropriate
  • contain terms that are offensive to any group based on gender, race, ethnicity, nationality, religion, or sexual orientation
  • promote or endorse a product, service, or vendor
  • are excessively repetitive, constitute “SPAM” or solicitation, or otherwise prevent a constructive dialogue for others
  • are factually erroneous or misleading
  • threaten the privacy rights of another person
  • infringe on intellectual property and proprietary rights of another, or the publication of which would violate the same
  • violate any laws or regulations

We reserve complete discretion to block or remove comments, or disable access privilege to users who do not comply with this policy. The fact that a comment is left on our website does not indicate Fannie Mae’s endorsement or support for the content of the comment.

Fannie Mae does not commit to reviewing all information and materials submitted by users of the website for consideration or publication by Fannie Mae (“User Generated Contents”). Personal information contained in User Generated Contents is subject to Fannie Mae’s Privacy Statement available here. Fannie Mae shall have otherwise no liability or obligation with respect to User Generated Contents and may freely copy, adapt, distribute, publish, or otherwise use User Generated Contents without any duty to account.

More in >

A Window Into Housing In America

Subscribe to our newsletter for each week's top stories. Enter your email address below to stay in the know.