LoanSifter Inc. has launched the initial phase of its new automated lock change management tool that enables mortgage bankers to automatically re-price loans when loan circumstances change, increasing their accuracy and compliance while saving time and money. Mortgage lenders allow borrowers to "lock" a mortgage interest rate and points as protection against fluctuations in mortgage rates. But when attributes of a loan change over the course of the loan process, lenders face the challenge of requesting a change to the lock, checking rate sheets and re-pricing and re-qualifying the loan manually, which can be arduous and risky. Until now, there was little or no technology to ease the process of requesting a rate lock change.
With LoanSifter’s lock-change management tool, originators can automatically retrieve historical pricing and eligibility, calculate the cost of a lock change, and submit change requests to their secondary departments, all within the LoanSifter platform at the click of a button. As secondary managers respond, the loan origination system is automatically updated and the originator is notified of the status of all requests. Each lender’s extension and lock-change policies are also supported.
“In today’s lending environment and shifting economy, it’s not unusual for loan circumstances and attributes to change midstream,” said Bruce Backer, president of LoanSifter. “When this happens, lenders usually have to start over and re-price loans manually from scratch. Our new tools save them the trouble by automatically calculating the impact of the change and thoroughly documenting each step. Lenders have been asking us for help in these areas, so we’re very excited to add these tools to the LoanSifter platform.”