Accurate loan pricing is a pillar of profitability, especially in a market where mortgage lenders report losing an average of $2,100 per loan.
However, achieving the delicate balance between competitive rates and sustainable profits becomes increasingly challenging as more loan variables, loan volume, and market volatility are introduced. Add to this consumer expectations for fast, digital service, and it becomes impossible to keep up using manual loan pricing methodologies.
Lenders with instantaneous access to accurate pricing can offer borrowers better service and competitive rates, all while streamlining operations. A sophisticated product, pricing, and eligibility (PPE) solution uses direct-source investor data to provide fast, accurate pricing. Plus, it gives lenders the agility to adapt to market changes and scale their businesses.
A sophisticated PPE can perform the following three functions, which are critical to profitability:
Accurate pricing with real-time data
It’s no secret that borrowers shop around for the best rate and terms and will compare your offerings with those of other lenders. To provide accurate, competitive pricing, you’ll need a PPE solution capable of evaluating the full spectrum of loan products offered by the total universe of investors. What’s more, insight into competitor and secondary pricing helps further dial in profitability.
Lock desk automation
An advanced PPE goes beyond just providing price quotes. Automating your lock desk with rule-based functionality can significantly reduce risk and production expenses. Minimizing manual intervention in lock desk processes also has other benefits. It empowers loan officers to quote, lock, and manage their pipelines confidently. Also, it supports borrower satisfaction with interest rate locking and expedited loan processing times.
Multiple pricing scenarios
Whether borrowers engage online or in person, they expect fast access to their options and associated costs. A PPE can integrate with both borrower-facing and internal lending tools, enabling lenders to swiftly identify saleable loan products based on borrower scenarios and eligibility criteria. This functionality enables loan officers to serve borrowers better by presenting them with the best options for their unique financial scenario.
Your Trusted Partner in Pricing Accuracy
Thousands of mortgage lenders and brokers rely on the Optimal Blue PPE to provide pricing where precision is paramount. That’s because Optimal Blue’s reputation for delivering top-tier pricing is well-earned in an industry where such accuracy is not just a competitive edge but is also regulated and serves as the foundation of trust between lenders and borrowers.
Optimal Blue pioneered the PPE concept and remains the only provider of a counterparty oversight solution. We process thousands of investor rate sheets daily to offer the most accurate, real-time pricing available. We give lenders a clearer view of pricing components and help them understand how they compare to competitors. Plus, with each additional user, the power of our network grows.
Learn more about how the Optimal Blue PPE can help you optimize your advantage.
