SOURCE: Loan-Score Decisioning Systems

March 05, 2008 07:58 ET

BMC Software Investments Inc. Acquires Loan-Score Decisioning Systems LLC

Acquisition Prepares AUS Vendor for Strategic Growth, Drives Innovation and Positions the Company to Pursue Larger Clients

HOT SPRINGS, AR--(Marketwire - March 5, 2008) - BMC Software Investments Inc., a Southeastern-based investment firm, announced that it has acquired Loan-Score Decisioning Systems LLC, an emerging leader in enterprise-class automated underwriting solutions. The acquisition positions Loan-Score to become a dominant player in the financial services industry for next-generation decisioning and risk management solutions. Terms of the deal were not disclosed.

BMC's acquisition and subsequent capital infusion into Loan-Score will be used to develop new solution offerings, expand the company's infrastructure, hire additional development staff, increase its sales and marketing efforts, strengthen its balance sheet to pursue tier one clients, and prepare for increased demand when marketplace liquidity returns.

Loan-Score's best-of-breed solutions include an enterprise-class AUS, product/pricing engine, PDA-based pre-qual application, bulk pricing application, and point-of-sale Web portals for all lending channels and product types. The company developed two distinct technology ownership models to accommodate client size and preference. Loan-Score offers a software-as-a-service (SaaS) model whereby its managed services division maintains frequent changes to guidelines, eligibility requirements and rates. Clients can also opt to use a self-hosted model, which allows lenders to license Loan-Score's rules engine and configurable rules editor. The company has engineered its solutions to deliver swift, cost-effective implementations that integrate with existing LOSs and avoid inflexible programming efforts and high maintenance costs.

"We've been making various investments in the mortgage banking industry for more than 25 years, and nothing has looked more promising than our purchase of Loan-Score," said William McCord, CEO of BMC Software Investments and chairman of Loan-Score. "What has happened to the mortgage industry over the past year is unprecedented. Several AUS vendors have already closed their doors and a number of others are in trouble, which creates an opportunity for Loan-Score to dominate the AU space given the right investment partner. We take a contrarian viewpoint to our investments; market conditions coupled with Loan-Score's software-as-a-service delivery model is very attractive to us and we see a clear-cut return on investment for BMC."

McCord added: "Loan-Score has a number of advantages over its competitors. With our acquisition comes capital, which is a critical element mortgage technology vendors are now lacking, consequently putting lenders at risk as their vendors do not have the wherewithal to weather this prolonged storm."

About Loan-Score Decisioning Systems

Founded in 2000 and headquartered in Irvine, California, Loan-Score Decisioning Systems offers a true, enterprise-class AUS and product/pricing engine available on a software-as-a-service (SaaS) and also a self-hosted basis for all lending channels and product types. The company also extends various functionality to the point-of-sale via its Web portals. Loan-Score maintains a comprehensive, up-to-date library of investor guidelines and pricing to ensure eligibility is met and market conditions are adjusted to deliver precision-based underwriting that results in fundable loans. The company has engineered its solutions to deliver swift, cost-are engineered to deliver swift, cost-effective implementations that integrate with existing LOSs and avoid inflexible programming efforts and high maintenance costs. Through Loan-Score's unique approach to customer service, the company's on-demand SaaS model offers clients the option to utilize its extensive library of investor guidelines, or the ability to manage unique program guidelines themselves. Loan-Score's solutions are in production with small, medium and large lending institutions. For more information, visit www.loan-score.com or call 949-450-0102.

Contact Information

  • CONTACT:
    Joe Bowerbank
    Senior Vice President of Marketing
    Loan-Score Decisioning Systems
    949.450.0102, ext. 20
    Email Contact