Mortgage lenders must strike a delicate balance between optimizing their processes to remain flexible and responsive to market changes and adopting cost-effective and scalable technology to achieve greater efficiency in an industry where innovation has historically lagged.
While mortgage technology solutions (e.g., CRM, POS, LOS, etc.) address particular stages of the loan origination process, a pricing and eligibility engine (“PPE”) impacts the entire process. It can serve as a cost-effective solution to realize immediate ROI. While all PPE solutions provide pricing, there are significant differences in technological capabilities between a legacy PPE and a modern PPE. Legacy PPE solutions are proven but unable to scale. A modern PPE is highly configurable from its user interface to its easily manageable back-end, where you maintain loan programs, loan-level pricing adjustments, margin management, and lock desk workflows. All of this can help lenders reduce their overhead expenses while still providing the best service to meet the expectations of their borrowers. Getting the best possible deal for your customers is necessary to win the mortgage business.
What distinguishes legacy PPEs from their modern counterparts primarily relates to a monolithic tech stack and its impact on scalability and performance. However, technology is not what separates modern PPEs. All modern PPE solutions offer scalability because that is one of the critical objectives of new technologies. What distinguishes one modern PPE from another primarily relates to execution, implementation experience, know-how, mortgage expertise, and customer service. The risk of selecting an unproven provider can cost decision-makers and damage credibility. As lenders become more deliberate in their assessment, review, and selection process, the provider’s track record becomes a significant (and oftentimes, determining) factor in winning the business.
Which modern PPE solution has the demonstratable track record of successfully executing mid-sized and large-scale implementations for the many types of lenders in the mortgage industry? Lender Price is time-tested and experienced. We are uniquely positioned to offer solutions, advice, and recommendations because we have seen and gone through many different types of implementation scenarios. We are confident in our ability to deliver a PPE solution that meets the needs of Banks, IMBs, credit unions, and large enterprise lenders.
Our scalable PPE can help lenders identify the lowest possible rates and best loan programs and provide the best possible customer service. It can also help them extend their reach and improve efficiency by providing more accurate and timely secondary marketing insight. A modern and proven PPE solution will enable a lender to outperform its peers in an economic upturn and survive when the tides shift, as we are experiencing in the current market downturn.
A modern and proven PPE can help lenders improve their customer experience by continuously improving their pricing and eligibility processes. Lenders can also maintain their scalable operations by constantly adapting to the changes in the market. The right PPE helps lenders improve their pricing and eligibility rules, provide granular margin management, and maintain a scalable operation.
When it comes to the mortgage process, customers expect the best possible deal. They also want to access the most accurate and competitive scenarios. A modern and proven PPE can help lenders deliver this by allowing them to access calculations in seconds.
- A modern PPE can provide pricing information for all consumer lending products. Adding loan programs, LLPAs, eligibility rules, margins, and lock workflows should be streamlined, straightforward, and accomplished in a fraction of the time.
- An advanced PPE can help lenders present the best possible deal instantly. It can also help them identify the lowest possible rate by analyzing the information provided by their customers.
- One of the most critical factors that a lender should consider when choosing a PPE is the availability of an API that can be used to make pricing more accessible to their customers. When picking a PPE with an API, lenders frequently assume that all APIs perform identically. An advanced PPE with an API is quite distinct from a legacy PPE with an API. Legacy APIs are inefficient and lack a comprehensive set of functions. Most significantly, it extends the existing legacy system with an expiration date.
- Today’s borrowers expect a more transparent and competitive rate. A scenario-based product eligibility engine can help lenders provide a more accurate and personalized experience by allowing them to understand which products are most likely to be offered.
- A modern PPE should also provide lenders with the necessary tools and guidelines to create and maintain a competitive product.
- Modern PPE technology can help lenders create and maintain a competitive product by continuously improving their pricing and eligibility processes. It can help them align their offerings with the latest borrower scenarios and rules.
- One of the most critical factors a lender should consider when choosing a PPE is the availability to price thousands of products in under 1 second.
- The lock desk is a vital component of secondary marketing operations and significantly increases a company’s profitability. It has to constantly adapt to changes in the market, such as implementing new lock policy workflows and pricing concessions.
- By implementing more effective workflows and faster processing, an modern PPE can help lenders reduce operational costs and improve efficiency. It can also help them manage their high-volume periods by eliminating manual processes. One of the most common features of an advanced PPE is the ability to automate the lock desk’s various functions, such as auto acceptance of requests, price concessions, and relock requests.
- Aside from the lock desk, an advanced PPE can also help lenders implement other operational processes, such as mortgage insurance quoting. It can also help them improve their profitability by reducing risk and operational efficiency.
- The ability to provide various products and services across the mortgage life cycle depends on highly accurate and timely pricing data. Having the necessary connectivity to third-party technology providers is also essential to ensure that the lock desk and pricing data are always up-to-date and provide the best customer experience.
- Aside from providing the best possible customer experience, transparency is also vital to success in the mortgage industry. This is why many lenders recognize the importance of having the necessary tools and resources to continuously monitor and analyze the market.
- An advanced PPE can help lenders understand their customer’s financial situations and make better decisions. It can also provide them with the necessary tools to improve their efficiency and profitability.
- Having the correct data is also vital to ensure that lenders can make informed decisions regarding pricing and marketing. Having the right data can help them identify areas of their business that are performing well and where they should expand their operations.
- An advanced PPE can help lenders access unprecedented data sets and provide them with the necessary tools to make informed decisions.
- Aside from having the correct data, an advanced PPE should also allow lenders to fully optimize their secondary marketing operations by providing them with real-time data on changes in lock data and activity at the branch and loan level. Having the necessary competitive analytics can help you improve your chances of success in the mortgage industry.
- Automation can also help lenders manage their operations as they grow. It can help them adapt to new strategies and improve efficiency as they expand their operations.
- An advanced secondary marketing automation solution can also help lenders improve their efficiency and effectiveness throughout the mortgage life cycle. It can help them manage their various tasks and processes seamlessly.
- As the mortgage industry continues to grow, lenders must have the necessary tools and resources to manage their operations as they evolve.
- An advanced PPE can help lenders quickly visualize their pipeline and commit loans for sale across all their branches.
- The right tools and resources can help lenders make informed decisions regarding their mortgage servicing rights.
- Due to the complexity of the mortgage industry, the secondary marketing process has become more resource-intensive and time-consuming. An advanced PPE can help lenders reduce costs and improve their profitability.
Check us out at www.LenderPrice.com, book a demo, and see what a truly modern and proven solution should look like.
Author: Dawar Alimi
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