San Diego-based Plaza Home Mortgage, Inc. is the latest firm to buy into Point of Sale decisioning technology from Loan-Score Decisioning Systems, LLC, also based in San Diego. The lender will use it on the wholesale side, giving its third-party originators easy access to its LOS for real-time status reports on deals in the pipeline. Plaza Home will use the technology in 16 wholesale branches nationwide to drive efficiencies on $3.6 billion in annual funding.
Loan-Score’s AUS underwrites all types of loans and will seamlessly integrate with Fannie Mae’s DU®/DO, Freddie Mac’s LP, FHA Total Scorecard and DataTrac, Plaza’s back-end processing and banking system. The solution is designed to deliver instant product eligibility, pricing and automated underwriting approvals, complete with all conditions and loan details. The solution utilizes a centralized rules repository to ensure continuity and accuracy for each of Plaza’s 16 branch locations. Brokers stand to benefit from the enhanced portal and pipeline management capabilities that will be embedded into the lender’s existing corporate website.
Brokers will run an initial prequalification, then complete or upload a 1003 into Loan-Score’s system to accurately decision and underwrite a loan. It is then automatically populated into the appropriate fields within DataTrac via a tight, nine-point integration with Plaza’s core system. Loan-Score’s AUS and DataTrac automatically talk to each other, updating conditions and loan-level status in real-time within the broker portal using advanced Microsoft® .NET 3.0 Web Services. This seamless integration allows for the bi-directional flow of loan-level details and real-time status between back-end processing staff and brokers at the POS, and also eliminates the need to re-key data, thus reducing costly errors.
“As market needs have shifted, so have we in terms of our development efforts,” said Scott Burgess, president of Loan-Score. “We engineered our AUS to evaluate very complex lending scenarios where deep credit analysis is critical to accuracy and risk mitigation. The industry, however, has clearly gravitated toward safer underwriting practices. Consequently, we responded by establishing seamless integrations with Fannie’s DU®/DO®, Freddie’s LP® and connectivity to FHA Total Scorecard. This is huge given the market shift.”
The Loan-Score AUS is offered on a SaaS basis.
The deep credit analysis that Mr. Burgess refers to sounds very similar to the features that were once touted by subprime AU engine developers. Firms that specialized in those tools have fared poorly of late as lenders reduced their loan program menus and liquidity dried up for subprime lending, ARC Systems being a notable example. Bundling this tool with real-time statusing and tight integration with a popular LOS was a smart move.