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December 29, 2009
AmTrust Isn’t Done By A Long Shot
In the last edition of this blog I mourned the loss of an electronic mortgage pioneer, AmTrust. As it turns out, that obituary was premature and this mortgage technology editor couldn’t be happier. New information has come to light that will make e-mortgage believers very happy, indeed.
After the acquisition of AmTrust by New York Community Bank, there was uncertainty as to how new ownership would impact the bank’s presence as an e-mortgage pioneer. Many executives were wondering if it would be “e” business as usual, or “e” business out the door. And make no mistake, AmTrust is important in the overall adoption of e-mortgages as over 80% of the e-notes registered on MERS come from AmTrust.
The first glimmer of good news came when I was forwarded a statement that said, “Just two weeks after acquiring the deposits and certain assets of AmTrust Bank, New York Community Bank, the second largest thrift in the nation, today announced that is has employed 1,459 of AmTrust’s employees. In connection with the announcement, New York Community Bank noted that it will maintain AmTrust’s Mortgage Banking Operation, which originated $20.1 billion of single-family home loans for sale in the first nine months of 2009.”
That was nice, but what does that mean for the bank’s e-mortgage strategy for 2010? There will be no impact, according to Jon Baymiller, AmTrust’s executive vice president, mortgage banking. “We are continuing to operate AmTrust Mortgage Banking in the same fashion as previously executed,” she said.
In fact, Mr. Baymiller went further to say, “We will continue to enhance our e-vision going forward. We would expect [e-note/e-mortgage] production in 2010 to be consistent with 2009's.” There you have it.
While new players will likely enter the e-mortgage space in 2010, it seems none will be lost. AmTrust has led and continues to lead the way in proving out the e-mortgage case and others will likely follow.
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Comments
Posted: 2009-12-29 12:53:09
by Brenda Clem-Fifth Third
I am glad to hear New York Community Bank will continue to support the eMortgage vision, and 1,459 employees will remain employed in mortgage banking. There were enough casualties in 2009.
Posted: 2009-12-29 13:35:11
by Tim Anderson
This is good news for the industry and continues to serve as a real business case, model and market validation on how eMortgages deliver a new and better way of doing business, garners customer acceptance and adoption and delivers a market differentiator and competitive advantage.
Posted: 2009-12-30 11:33:59
by Gabe Minton
This is great news. Having gone through the AmTrust eMortgage system (GemStone) as a consumer (while teaching the settlement services provider what an eMortgage was :-) ), I have been a big supporter of AmTrust's vision (even going back to OSB). They are clearly benefiting from eMortgage technology and hopefully more lenders will follow suit--
Posted: 2009-12-30 12:10:29
by Scott Cooley
We can't expect much innovation during times like these. In fact, in many cases we are lucky to hold on to the progress that's been made with mortgage technology. Good to hear the work of AmTrust won't go to that great data bucket in the sky.
Posted: 2009-12-30 12:55:14
by Cary Burch
This is great news! Consolidation in this economic environment that sustains vision, employees and advanced technological efforts like e-mortgages will further propel lenders towards increased profitability. Clearly, New York Community Bank's decision to acquire AmTrust was more than just an simple portfolio deal - it was a huge strategic play that will put them center stage at one of the most critical components of future lending.....the eMortgage. Cary Burch CEO LSSI
Posted: 2010-01-19 15:42:29
by Brian Davenport
This is good to hear. I am hopeful that New York Community Bank will be as aggressive an emortgage pioneer as AmTrust was.
Posted: 2010-01-21 16:41:30
by Joe Dahleen
I agree with Cary - this will propel other lenders toward increased profitability. What most miss about this type of e-note strategy is that it really helps with transaction velocity. Clearing warehouses lines opens up room for more funded production. It's really one of the main reasons we deploy this strategy with Signia Docs.
