PriceMyLoan has developed the Rate Sheet Expiration tool to assist mortgage lenders in maintaining up-to-date pricing on their loan products. An uncertain mortgage environment has heightened pricing risks for many lenders. To help these private mortgage bankers react to market changes swiftly and avoid losses due to pricing errors, PriceMyLoan offers a tool called Rate Sheet Expiration. Loan pricing technology has emerged as a necessary tool for mortgage lenders. Instead of the traditional paper rate sheet, the industry now expects lenders to offer online tools that allow instant verification of loan pricing in real-time. But the ability to quote prices instantaneously creates a problem for mortgage lenders when prices change faster than their online tool can handle.
"Lenders are under the gun to provide competitive pricing," said Gigi Campbell, national sales director for PriceMyLoan. "But if they're quoting prices that aren't available when they lock with investors, they either risk losing money trying to cover the difference or lose a customer because they can't deliver on what was promised."
PriceMyLoan understands the sensitivity that lenders have to pricing changes and developed a proprietary tool called Rate Sheet Expiration. With this feature, lenders are able to selectively shut down pricing on specific loan products and prevent originators from locking on results that they know are not current. Rates can then be released whenever the rates are updated so their originators can request locks on correct rates.
"PriceMyLoan uploads new rate sheets on a continuous basis throughout the day. But our automation relies on investors delivering new rate sheets in a timely matter, and that isn't always the case," noted Campbell. "It's during those periods when our lenders know pricing is going to be updated that they need to be covered. That's why the Rate Sheet Expiration feature is so valuable."
However, Rate Sheet Expiration only affects the pricing functionality of PriceMyLoan and does not impact the system's automated underwriting capabilities. When pricing has been disabled, the system continues to qualify loans according to investor guidelines. Users are restricted to registering loans with a float request and can request locks when pricing has been re-enabled.
"All of these pricing changes that come down from investors can really throw a wrench in our process," said Luiz Serva, chief executive officer of Prysma Lending Group in Danbury, Conn. "PriceMyLoan was really clever about disabling pricing because it prevents loan officers from locking rates but still allows them to see which products their borrowers qualify for. When you combine PriceMyLoan's automated underwriting capabilities with its pricing features you have a system that inspires confidence."
For more information, visit www.pricemyloan.com.