Bank Notes | IBM unit creates services for mortgage lenders

IBM unit creates services for mortgage lenders

A Charlotte-based IBM Corp. unit this week said it's rolling out new products and services for mortgage lenders looking to cut costs and improve efficiency in the industry's downturn.

At a conference this week in San Francisco, IBM Lender Business Process Services Inc. said it has developed new technology to help lenders process Federal Housing Administration loans and to cut down on fraud. In a survey, IBM said it found that 36 percent of lenders plan to increase their use of outsourcing services in the next year and a half.

The unit, which has about 75 employees in Charlotte, launched in late 2006. In April, it began serving its first customer, Raleigh-based Coastal Federal Credit Union, and it's in talks with other potential clients, said Greg Sullins, who leads the unit. With the new products, IBM is looking to fill specific needs of lenders in the mortgage industry downturn, he said.

“We need to have an a la carte menu of services to address the changing environment that's going on,” Sullins said.

Rick Rothacker

CapitalSouth invests $32 million in 3 firms

CapitalSouth Partners, a Charlotte-based investment firm, said it invested $32 million in three mid-sized companies in Colorado, Missouri and Kentucky.

After raising its third fund, CapitalSouth said it has $500 million in assets under management. The firm has “substantial liquidity” to invest $5 million to $25 million in mid-sized companies around the country, said CapitalSouth chief executive Joe Alala.

Rick Rothacker