Founded July 1999, Precept says its origination system is a sophisticated exchange between brokers, mortgage lenders and borrowers. Brokers register with Precept Mortgage at no cost, and borrowers working with registered Precept brokers receive significant discounts on Precept services. Borrowers will pay due-diligence costs and lenders would pay a registration fee.

One of the main business costs lenders face is conducting due diligence on loan proposals that do not get approvals. Company officials hope Precept Mortgage will allow lenders to bid on loans with bearing some of those due-diligence costs. "Precept Mortgage will complete all due diligence on deals and set them up on the auction site," says one company source. "Lenders who bid will have full knowledge of the deals. This provides the borrower one place to submit a deal to a number of lenders."

Although the company is officially launching its services early next month, it has already begun the process of reviewing deals with prospective users. Company sources declined to say how Precept Mortgage was funded. The former Nomura executives are Stewart Ward, Frank Scavone and Joe Heil.