Economic activity

Flueid gears up to support home equity buying and lending

Software-as-a-service and escrow provider Flueid Decision’s technology platform can now detect solar panels and liens.

Software-as-a-service title and escrow provider Flueid extends its patented technology platform, Flueid Decision, to manage property purchase and equity transactions.

Launched in 2020, the Flueid Decision platform has a proven track record of helping clients centralize and automate title clearance decisions on mortgage refinances in less than a minute, according to the company.

With rising interest rates drying up much of its clients’ mortgage refinance business, Flueid said on Thursday it stands ready to help lenders manage more complex home loans, and is also preparing to step up. attack purchase loans with a “limited version” of its purchase decision. product.

Peter Bowman

“The real estate market is cyclical in nature, so we are constantly focused on bringing additional verticals online to support clients in all types of transactions served by their businesses,” said Flueid co-founder and CEO Peter Bowman, in a statement. “As 2022 has moved away from refinancing, the increase in purchase and real estate capital transactions represents an opportunity for us to do what we have been preparing for all along: shaping our scalable engine to adapt to the needs of customers – and consumers. ”

In a forecast released Thursday, economists at Fannie Mae said they expected mortgage lending to fall 40% this year, to $2.695 billion, with mortgage refinances expected to drop 69%, to $797 billion. billions of dollars.

“At the current mortgage rate of 5.3%, we estimate that only 1.4% of outstanding loans have a refinancing incentive of at least 50 basis points,” Fannie Mae economists said. “What remains of refinance activity, we expect to be dominated by cash refinances. We estimate that cash refinances accounted for 51% of the refinance market in March and expect this share to increase in the future.

Some mortgage lenders have downsized as their refi business dries up, including Better, Pennymac, Guaranteed Rate, Keller Mortgage, Mr. Cooper and Wells Fargo. In the first-quarter earnings report, Rocket Companies Inc. executives said they expect buyout offers made to 2,000 employees to save $180 million a year, while LoanDepot executives said they did not expect to make a profit this year and would lay off workers and suspend the company’s quarterly dividend.

Digital title insurance, escrow and closing provider Doma is also rushing to put its technology to use in buying mortgages after announcing layoffs of 15% of the company’s workforce. due to plummeting refinancings.

Flueid calls its end-to-end home equity decision “a scalable technology that brings the data and insights needed to accelerate workflows and deliver a faster overall closing experience,” for owners looking to collect net worth.

Home Equity Decision for Lenders and Home Equity Decision for Title are stand-alone products that, when used together, “can accelerate speed and collaboration” between lenders and title insurers, the company says.

For purchase loans, Flueid says it is getting closer to launching the purchase decision, a solution it launched as a pilot program last August to digitally enhance search and review reviews to verify consumer data found in near real-time information reporting.

The Buy Decision “is now available to customers in a limited release capacity for continued collaboration and refinement prior to its general market launch,” the company said.

Flueid said it was granted a second patent for its technology platform, Flueid Decision. The latest patent — US Patent 11,310,344granted April 19, 2022 – is a continuation of U.S. patent 11,095,756granted on August 17, 2021.

The company calls Flueid Decision “the first and only multi-tenant, agnostic system on the market”, which means “it is not owned or operated by a single underwriter, title agent, lender, service provider or service provider and is not focused on a single component of the real estate life cycle.

To help lenders adapt to the trend of financing rooftop solar panels with home-secured loans, Flueid Decision has been updated to detect solar panels and the liens created when homeowners sign up for Property Assessed Clean Energy (PACE) and Home Energy Renovation Opportunity (HERO) loans.

Flueid Decision can detect solar panels through satellite imagery, and PACE/HERO loans through property tax data and Uniform Commercial Code (UCC) liens filed with the Secretary of State’s offices, reducing thus the risks during the title search.

Peter Richter

Founded in 2017 and self-funded by Title365 veterans Bowman and Peter Richter, Flueid Software Corp. announcement a Series A funding round led by Aquiline Technology Growth (ATG) in February 2021. Last summer, the company announcement that it had acquired core proprietary technology and related assets from Vodii, a developer of software tools for the title and escrow industry.

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