Friday, May 15, 2009

Loan-Score is using Wordpress


I was pleasantly surprised to see another mortgage technology vendor was sharing thoughts with the industry through their own blog. The folks over at Loan-Score are launching a new WordPress blog and I have no doubt they'll be sharing some very interesting information.

Over the past couple of years, the automated underwriting business has fallen out of favor a bit, catching some of the blame for rushing billions of dollars worth of bad loans through the application process and into the pipelines of lenders, many of whom were subsequently forced out of business by buybacks when the borrowers defaulted.

Product & Pricing Engines (PPEs) don't really underwrite the loans, but they give loan officers a glimpse at what's possible for a given borrower given a certain set of assumptions. They have become important tools for originators.

Because they bolt onto the front of the origination process, PPEs have to integrate well with other tools lenders use, which is why I was pleased to see Loan-Score open up that discussion on their blog. I'll definitely be subscribing to this feed and suggest you do as well.

Photo credit: Nikolay Bachiyski
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Monday, May 04, 2009

Loan-Score Decisioning Systems, Irvine, Calif., an enterprise-class pricing and automated underwriting solutions provider, announced a new customer not long ago. United Residential Lending, a national mortgage banker, has rolled out the company's integrated product and pricing engine (PPE), automated underwriting system (AUS) and broker portal. The solution seamlessly integrates with Del Mar DataTrac, United Residential’s back-end loan processing system to deliver enhanced customer visibility into the approval process.

“Loan-Score’s solution allows our customers to visit our new broker portal, run product and pricing scenarios, upload a 1003, pull or re-pull credit, return a decision and receive immediate automated underwriting approvals while at the point-of-sale,” said Shane O’Dell, senior vice president at United Residential Lending. “We selected Loan-Score because of the depth their AUS and PPE offers and their proven integration with DataTrac. The integration automatically updates our brokers’ pipelines with loan details and condition status as the back office makes changes. Providing customers that level of visibility and service is paramount to growing our business. The portal we’ve rolled out really empowers our brokers with the capability to provide fast and accurate answers to borrowers.”

The lender will use Loan-Score’s outsourced managed services team to maintain its programs, custom pricing and overlays to ensure that constant investor changes are up-to-date and accurate. Loan-Score also automates United Residential’s daily rate sheet creation and maintenance, making it a virtual display of rates that is easily accessible at the portal. The solution is delivered via SaaS.

"Today’s market is forcing lenders to operate in a highly profit-pinched environment,” said David Colwell, executive vice president at Loan-Score. “By using Loan-Score’s AUS at the point-of-sale, the system basically serves as a ‘deal filter’ that accurately determines whether loans are actually fundable before they go to underwriting."