LendingQB, Costa Mesa, Calif., a provider of web browser-based mortgage loan origination technology, and FirstClose Title have entered a partnership they say will allow loan officers to save borrowers up to $1,000 on closing costs.
The partnership allows LendingQB users to benefit from instant ‘cash-to-close’ quotes with real-time automated underwriting and loan pricing, the companies said. They explained that the savings were a result of the ability of FirstClose Title to compare rates from a wide range of major underwriters and transparently present the lowest price to lenders and borrowers. FirstClose Title also guarantees the accuracy of the GFE data, protecting lenders from covering additional costs resulting from poor GFE data entry.
“We actively seek out best pricing among major underwriters to deliver pure, unaltered comparative rate quotes,” said Cynthia Waterman, president and CEO of FirstClose Title. “This allows us to present quotes averaging $500 to $1,000 below competing GFE quotes, providing lenders with a ‘cash-to-close’ advantage that makes their offer more competitive and secures a relationship with a potential borrower more quickly. It is a very powerful tool that resonates very strongly with consumers, especially in today’s cost-conscious economy.”
“As a loan origination system, our goals are to increase a lender’s efficiency and maintain data integrity,” said Binh Dang, LendingQB’s managing partner. “The software integration with FirstClose actually goes beyond these goals and has a direct impact on a lender’s ability to increase revenue. It makes lenders more competitive by improving point-of-sale pricing and increasing consumer selection.”
I have been watching Dang for some time. I sat down with him at a show last year, before his company formally release LendingQB, and was impressed with his insight into the mortgage lending business. He is correct that lenders are in a heated battle the Point of Sale and better information to borrowers quicker could mean more business to nimble originators. But is there really $1,000 that can be shaved out of the GFE? And what about the quality of the partners that can afford to operate at those reduced margins? I'll be watching this closely to see how LendingQB users fare with the new partnership and hoping to hear some stories from the borrowers who benefit.