Who is eMagic? eMagic is essentially a gateway to faster loan originating and processing. We’re a web-based mortgage technology company that helps originators and investors automate the mortgage lending process from start to finish in a multi-channel environment. For 10 years eMagic’s mission has been to provide affordable technology solutions. Our fundamental mission has never changed. We’re focused on helping mortgage professionals originate loans more efficiently. We work closely with our partners to continuously enhance our platform based on customer needs, thereby providing them the benefits of seamless automated loan origination. eMagic continues to enhance security in communication and document management and improve operational efficiencies to increase our customers’ profitability. How exactly does eMagic help mortgage originators and lenders? eMagic offers a broad array of benefits; but in response to today’s environment, we focus on managing expenses. Lenders have experienced a decline in origination volume and an increase in production and operational expenses. According to recent figures from the Mortgage Bankers Association, lenders suffered a 40% decline in average profit per loan in 2009’s fourth quarter compared to the previous years. A major contributor to that drop was the rise in production operating expenses. Costs rose from $4,402 per loan in the fourth quarter of 2009 to $5,147 per loan in the first quarter of 2010. This 32% drop in a loan’s average profit in the first quarter represents a serious concern for mortgage originators and lenders in terms of survival in an increasingly competitive market. Fortunately, eMagic can help automate the mortgage loan origination process by implementing paperless technology and reducing operational costs. Another clear benefit of paperless mortgages is a faster turnaround time during loan processing. The simple act of securely sending a loan package online cuts down on time spent on mailing files. Imagine an originator mailing a loan package to the underwriter, who then mails the same package to an alternative branch for processing. If underwriting determines that the package is incomplete, it’s mailed back to the originator. With eMagic, the same loan package would have taken only minutes – instead of days – to move from location to location, without the cost of overnight delivery. Implementing paperless technology also addresses security issues. Many companies still e-mail sensitive borrower information and documentation, putting themselves and their borrowers at risk. E-mail poses a security risk to the financial institution and the borrower because the email path is not secure. eMagic’s secure messaging system minimizes this legal and security risk by allowing customers to “post” loan documents to our secure server, only accessible by those invited to view them. So, eMagic helps originators and lenders reduce costs? Absolutely. Mortgage technology doesn’t have to be expensive. There’s always been a myth that technology solutions need to be high-priced and uneconomical. We’re excited to prove that is flatly untrue. For example, consider eMagic’s document imaging solution found in our eDocs package. eDocs provides lenders and originators ways to significantly reduce paper-related expenses. The average loan generates over 400 pieces of paper, and overnight delivery costs are trending up. A document imaging and file management system allows businesses to not only store all loan files securely online, but also deliver and share loan files electronically to everyone involved in the loan process. One customer used our secure online loan delivery system, which is currently found in eDocs, to electronically deliver 600 closing packages to the title company in 2009. The typical cost of mailing a loan package overnight is approximately $15 – meaning there was enough money saved on 600 loans to pay for 10 years of eMagic’s document imaging. And that’s just calculating a $9,000 savings on overnight costs alone. The paperless solutions found in eDocs also reduce printing, shredding and paper loan file storage costs. If you think about it, any time or anywhere you’re automating the mortgage loan process with eMagic’s various tools, you’re reducing the amount of resources and time it takes to perform that task, whether it be hunting down a paper loan document or manually pricing a loan. That reduced effort leads to lower operating costs and more time generating new business. Does eMagic replace their current LOS? While eMagic contains a wide range of functionality that facilitates loan processing, it’s designed to work with lenders’ existing LOS’. Be implementing eMagic, lenders enjoy many of the benefits that come from the functionality in LOS upgrades – but without the money, work and headaches associated with actually upgrading it. Most customers benefit by using separate elements of eMagic to address gaps in their own loan origination process. In many cases, we consult with customers to determine how to best implement eMagic’s solutions in their unique operations and technology environment. eMagic customers generate leads using our customizable online mortgage application, view and track their pipeline of leads and loans, order services (such as Automated Underwriting, mortgage insurance, flood, credit and compliant initial disclosures), electronically compile and deliver loan folders to investors online, check loan status and communicate securely all on one application. Furthermore, they can archive these loans and access them for up to 7 years for pennies a file. eMagic just restructured its product lines, correct? We did. We streamlined and simplified our packages to better accommodate our customers. eMagic now offers three packages for mortgage originators ranging from free to just $70 a month. We also offer integrated powerful product and pricing engine tools and compliant initial disclosures. We’re simplifying our lender solutions as well. Free? eMagic is free? Our basic service is free, correct. eMagic makes the process of ordering mortgage-related products and services more efficient across all business channels and other parties to the loan – for free. Depending on what services they order – Automated Underwriting or credit, for example – they may be billed based on their vendor or investor agreements. Our eDocs package, which I mentioned earlier, takes automation a step further by offering more robust document management and delivery tools. For $39.95 a month, eDocs saves customers delivery costs by allowing loan files and packages to be sent and stored electronically. It addresses security concerns by offering a secure messaging center for exchanging sensitive borrower information. It speeds up the initial disclosure process through eMagic’s eConsent-compliant secure messaging system. It tracks the loan every step of the way and keeps an audit trail of all activity, available to the customer with the click of a button. Is there any other benefit in using eMagic? Our MortgageApp package includes all the functionality of our eDocs package but also includes an online mortgage application. For $69.95 a month, eMagic customers can capture today’s borrowers’ information with a secure, customizable online mortgage application. The application’s lead information is integrated into the eMagic workflow, saving data entry and loan processing time. Many of today’s homebuyers prefer the convenience of shopping and applying for a loan online. If mortgage lenders don’t have a mortgage loan application on their websites, they’re sending customers to the competition. eMagic’s MortgageApp allows originators and lenders to select which fields appear on the application and which are required. They can remove items that may scare off potential leads who may not be ready to divulge so much sensitive information. As our customers can attest, eMagic provides affordable solutions that address some of the biggest challenges mortgage originators and lenders currently face. Our products ease the financial burden in this market by automating workflow, lowering processing costs associated with loan origination and speeding up turnaround time. And that translates to a successful, productive mortgage lending experience. _________________________________ Chad Northington, Managing Director, came to eMagic in 2007 with more than 20 years in the mortgage industry. Since its inception, Chad was an eMagic user. He has brought that user experience to eMagic. His understanding of what our customers need is invaluable to developing new products and enhancements. As eMagic’s Managing Director, Chad oversees everything from development to operations and marketing.
