Global consulting firm Accenture will acquire loan originations and software document management services firm Mortgage Cadence.
Accenture sees the deal as a move that will add an “advanced technology platform” to its existing processing services for lenders in the mortgage space.
"The U.S. mortgage industry is entering an era in which efficiency, speed and the customer experience will be more crucial than ever in determining winners and losers," said Terry Moore, global managing director of Accenture Credit Services. "By adding this key mortgage processing asset, we will enhance our end-to-end credit services capabilities and bring a new generation of mortgage processing services to the industry. This offers lenders improved speed-to-market, cycle-time, costs, and productivity."
Mortgage Cadence’s technology will be used by Accenture as its core loan origination platform, helping process mortgages. Accenture will continue to offer the software to lenders through Accenture Software if they wish to acquire the software individually.
The move comes at a time when lenders are concerned about compliance, new regulations and partnerships that leverage technology to deliver efficient and cost-effective mortgage business processing.
“Traditional loan origination technologies have become too complex and cumbersome to meet today's market demands,” said Michael Detwiler, CEO of Mortgage Cadence. “Because our software is rules-based and highly configurable, it can help lenders accelerate new product introductions more easily, adapt to changing regulatory requirements and reduce overall cost structures.”
Mortgage Cadence is expected to become part of Accenture Credit Services, a unit of Accenture that focuses on financial services, providing clients with tech solutions, outsourcing and consulting.
Once the transaction closes, 190 employees working at Denver-based Mortgage Cadence will join Accenture Software.