Automating Mortgage Lending

Constellation Mortgage Solutions made headlines this year when Dark Matter Technologies (Dark Matter) announced the addition of the Constellation Mortgage Solutions NOVA loan origination system (LOS) to its product lineup. Bringing the NOVA LOS under its banner alongside the Empower LOS enables Dark Matter to offer two distinct LOS solutions and cater to a more diverse range of lender business models. Frank Poiesz, President of Constellation Mortgage Solutions, sat down with our editors to discuss this news and all things mortgage technology.

QUESTION: What initially sparked your interest in the mortgage technology sector?

FRANK POIESZ: The mortgage industry, with its inherent complexity, has always intrigued me. The potential to streamline lending processes through technology is deeply fascinating. Since early in my career, I have been driven by a passion for finding innovative ways to leverage technology. My journey in this sector spans roles in retail banking, all kinds of lending, technology consulting, and as a financial technology solution provider. In each of those roles, I’ve enjoyed finding new ways to use technology to save time, improve my team’s work experience, and optimize business outcomes.

QUESTION: Based upon your experience, what are the mortgage industry milestone changes that stand out to you the most?

FRANK POIESZ: In my personal journey, I’ve witnessed four transformative milestones. First, the Agency adoption of automated underwriting systems in the mid-1990s significantly changed how the industry manages credit risk and the origination process broadly speaking. Second, the digitization of documents. After the Uniform Electronic Transactions Act enabled extensive use of digital documents, origination process improvement was significant, though limited by slow change among state and local governments and considerable challenges gaining consumer adoption. Nevertheless, digital loan files significantly accelerated capital markets. Third, PPE, or Product, Pricing, and Eligibility platforms not only streamlined origination but reduced financial and credit risk for the entire industry while enabling the sophisticated secondary marketing capabilities that are at the center of the industry today. Finally, and this one is just beginning, the application of AI, machine learning, and complex rule systems has great potential to transform how lenders operate and how borrowers experience home ownership.

QUESTION: Congratulations on your recent appointment as President of Constellation Mortgage Solutions (CMS)! Could you share your vision for the company?

FRANK POIESZ: Thank you! As you may know, I most recently worked for Dark Matter, the origination technology spinout from Black Knight. We’re now part of Constellation Software. In fact, I still serve as Dark Matter’s Chief Strategy Officer in addition to my role as the President of Constellation Mortgage Solutions.

The Constellation Mortgage Solutions products, the NOVA LOS, CMS Servicing, and ReverseVision are all excellent solutions for their client communities. These great products complement the products offered by Dark Matter and vice versa. We are working hard on plans to deliver this full set of powerful capabilities that combines the strengths of CMS and Dark Matter Technologies. The two LOS platforms, Dark Matter’s Empower and NOVA, are targeted to different audiences, and together, we can offer the right LOS for each client. 

I’d be remiss if I didn’t mention the incredible partner community that supplements what we do at Dark Matter and Constellation Mortgage Solutions. Our loan origination systems may be at the core of what our origination clients do every day, but lenders depend on a wide array of services to support the American Dream. From lead generation to closing and beyond, lenders depend on an amazing array of great companies that provide lead sources, marketing campaigns, credit reports, flood certs, appraisal and title services, compliance and fraud detection capabilities, fee and property tax information, document preparation, and e-sign services. I’m sure I missed a few categories here. At Dark Matter and Constellation Mortgage Solutions, we avoid calling these companies “vendors” since that name implies a seller of a commodity. We call them partners for a simple reason: we share responsibility for our clients’ success. By bringing together the partner communities of our two companies, we give our clients and our partners more choices, more capabilities, and fewer headaches.

We’ll share other opportunities soon, but our aim is to offer a comprehensive solution that meets the needs of lenders of all sizes. We are not merely focused on cost reduction or a specific market segment; instead, we are committed to creating a competitive and dynamic offering for the entire industry.

QUESTION: Dark Matter and Constellation Mortgage Solutions are both relatively new names in the origination technology world. Can you share some of the DMT and CMS stories?

FRANK POIESZ: Certainly! First, the Constellation Software story is fascinating. The corporate strategy is to buy companies in the vertical market software world and keep them forever. The corporate culture is firm on that last word – forever. There’s never an intention to buy cheap and sell high; they’re interested in companies and management teams that will perform for the long term. There’s plenty of public information and analysis about Constellation, so I’ll leave it up to your readers to explore more if they want.

Constellation Software acquired Mortgage Builder in 2019. Mortgage Builder was rebranded as Constellation Mortgage Solutions in 2022 and subsequently launched the NOVA LOS. The business grew with the 2022 acquisitions of ReverseVision, a reverse mortgage LOS, and Axacore, a document management company that operates in the mortgage market.

Dark Matter was formerly the Origination Technology Division of Black Knight. The Dark Matter brand launched last fall when the business was acquired by Constellation Software. Among other things, Dark Matter’s mission is to provide the industry with advanced technology, including the Empower LOS and the innovative AIVA products, which combine AI and machine learning with complex business rules, business intelligence, and AI-included user experiences.

QUESTION: Dark Matter was, up until recently, a competitor of Constellation Mortgage Solutions; how do you foresee the relationship between Dark Matter and CMS evolving?

FRANK POIESZ: This one is easy. I’m very proud to be able to work with both the CMS and Dark Matter Technologies teams. I’ve worked with Rich Gagliano, Dark Matter Technologies CEO, and a great team of professionals for the 5+ years since I joined what is now Dark Matter, so I’m confident in our ability to deliver on our strategy. Beyond the technology we’ve built, Rich and my Dark Matter colleagues inspire me to be my best every day. Having a new team at CMS gives me the opportunity to learn from them and build a collaborative partnership among the teams. It’s easy to share our exciting vision for the future of mortgage tech. The market may be tough, but the industry and the Dark Matter and CMS teams are resilient and determined. Working together, we’ll create amazing solutions for our clients. 

QUESTION: What is your personal goal as President of CMS?

FRANK POIESZ: As President of Constellation Mortgage Solutions, my goal is to continue to build great software and to sustain strong relationships with our clients and industry partners for the long term. I hope to inspire the CMS team to provide our clients with innovative solutions using our products, along with collaborating with the Dark Matter team and product offerings. Meeting today’s needs is not good enough – we aim to anticipate future trends and challenges. By fostering a culture of continuous learning and improvement, I want to ensure that our clients see us as partners and innovators, not just as a technology provider. Ultimately, my goal is to help our clients succeed by providing them with the tools and support they need to thrive in an ever-evolving and often challenging marketplace.

The current market may be tough, but we’re resilient and determined. Along with our client and partner communities, Constellation Mortgage Solutions and Dark Matter will keep building amazing solutions that will pay huge dividends in any economic situation, especially when the current market headwinds ease.

INSIDER PROFILE

Frank Poiesz is the President of Constellation Mortgage Solutions, where he applies his experience in the mortgage and banking sectors to drive strategic growth and innovation. In addition to this role, Frank is Chief Strategy Officer of Dark Matter Technologies. His diverse background includes roles as a bank president, head of lending, consultant, and CRO at Compass Analytics. Known for his strategic vision and deep understanding of the mortgage market, Frank is committed to creating powerful, integrated solutions that offer significant value to lenders of all sizes. His personal motto, “learn something new every day,” reflects his dedication to continuous improvement and excellence in the industry.