I had an interesting conversation today with Linn Cook, Marketing Director for Costa Mesa, Calif.-based PriceMyLoan. The company just released news that it had won two additional lender clients for its Product and Pricing Engine (PPE) and Cook was explaining the value prospects are seeing in his company's product.
"The more accurate you are, the better customer service you’ll provide to the broker," he said. "Today when everyone is offering the same product at the same price, it’s all about customer service."
Drexel Lending Group, Ontario, Calif., and Rancho Cucamonga-based MSM Lender have both signed on to implement the PriceMyLoan system (PML).
Cook says that lenders are no longer satisfied with a PPE that just shoves junk into their pipelines. Lenders don't have resources to spend on deals that won't eventually close. Cook says the days of a broker sending a deal out to 20 wholesale lending account execs to see who can close it are over. More lenders want to know in advance whether the deal will fly.
Cook says his firm has a test that allows them to prove to prospects what PPL will do to their closing ration, which he says is all that matters when it comes to PPEs. "Value is only there if their closing ratios go up," he said.
I'll be reaching out to other PPE providers to find out what they promise lenders in regard to increasing closing ratios and exactly how they prove it.