After taking its loan portfolio management software, Daybreak - The Big Picture, to the auto sector, SuperSolutions Corp. is set to break into the home-equity front, sources at the company said.
"We've recently developed the home-equity module to Daybreak and are now looking to expand to that market," said Jeff Brown, vice president of sales and marketing at SuperSolutions.
The company is also looking into creating other models. "The natural progression is that we will begin to develop a first-mortgage model as well," he added.
SuperSolutions has made inroads into the auto sector by bringing Daybreak to Onyx Acceptance Corp. and autoeloan.com, which is a new Internet-based finance company.
The auto sector "is a natural fit for where we are today," Brown stated.
While autoeloan.com will utilize Daybreak to originate, service and collect loans, Onyx will only use Daybreak for servicing and collecting loans, Brown explained.
"Daybreak would allow both companies to be more efficient," he said. "It would also give them the flexibility and would allow them to evolve as market conditions change."
Following in the footsteps of these automobile companies, more asset-backed securities players will be using the Internet as an origination channel going forward.
"It might not be this year, but it's coming," said Joseph Sheridan, managing director at Standard & Poor's Rating Services.
"At some point down the road, I would not be surprised to see Internet origination become a meaningful portion of ABS volume," he added.
Sheridan noted that most of the growth in Internet-driven origination is likely to be seen in "consumer-lending arenas."