iServe Residential Lending, a retail mortgage banker based in San Diego, California, recently implemented the PriceMyLoan (PML) automated underwriting and loan pricing system. The company said in a release that it had taken the action as a way to improve the quality of their underwriting – especially in regards to investor overlays.
“We were looking for a way to scale our underwriting capabilities without increasing our risk,” said William Stock, director of capital markets at iServe. “PriceMyLoan was the only system that understood the importance of investor overlays and how it affects everything we do as a lender.”
PriceMyLoan touts its accuracy and ability to determine whether a loan meets specific investor overlays and guidelines – in addition to generating a fully adjusted price. According to the company, PriceMyLoan’s ability to read live credit report data is what enables it to be more accurate at determining loan eligibility, something it calls a competitive differentiator.
iServe hopes this will mean their originators will get a comprehensive decision on both borrower eligibility and pricing at the point of sale, before a rate has been locked and before it has been submitted for underwriting.
“Other systems rely heavily on Fannie Mae or Freddie Mac automated underwriting for loan eligibility,” said Stock. “This can lead to broken locks and lower pull through if investor overlays are missed after the fact. PriceMyLoan is unique because it combines a Fannie, Freddie or FHA decision with a comprehensive analysis of investor overlays and guidelines. We’re more confident that loans will be approved by investors, and we won’t have to waste time or resources re-underwriting loans.”