If a potential borrower comes to you for mortgage pricing options, what do you do? A mortgage pricing engine (PPE) gives you access to the accurate, real-time mortgage prices that your borrowers need.
Not only will this save you time during the loan process, providing mortgage pricing is the first step toward earning a borrower’s business.
What Is a Pricing Engine?
A Product Pricing Engine (PPE) is a software platform that mortgage loan origination teams use to calculate mortgage pricing options. Many pricing engines also generate loan pricing scenarios for borrowers to view their various rate options.
Why Use a Mortgage Pricing Engine?
By using a PPE, loan officers can shave valuable time off the loan process. Additionally, PPEs allow mortgage originators to compare rates across various lenders. They also lock rates until a borrower is ready to move forward with their loan.
Many companies prefer utilizing certain lenders. With a PPE, loan officers can view their company’s preferred lenders and pricing quotes, directly within the PPE.
The Top 3 Functions of A Mortgage Pricing Engine
1. Check loan rates across investors
The #1 function of a PPE is its ability to provide accurate, real-time pricing. If you or your company regularly works with specific lenders, you can choose to view their pricing data directly within the PPE. A PPE will help you choose the most profitable lending scenarios for you and your borrowers.
2. Compare worst case scenario and historical averages
Mortgage pricing engines let you take a look at how your calculated loan scenario compares to worst case scenario projections as well as historical averages.
3. Lock rates for borrowers
Another important feature of a mortgage PPE is the ability to lock a borrower’s rate. Normally, rate locks are good for between 30 and 60 days. A rate lock gives a borrower a chance to shop for their home with confidence, knowing that they have a rate locked in.
Many PPEs integrate directly with your preexisting mortgage software platforms, like a CRM, LOS, or POS.
The potential data flow could look something like this:
The Top Mortgage Pricing Engines We Will Review:
Read on if you’re curious about which PPE platform would work best for your team, as well as integrate seamlessly with the software platforms you already use.
Optimal Blue showcases their industry-leading PPE and a 99.995% accuracy rate in their completely compliant pricing. They also provide in-depth reports that show a comparison between current pricing, worst case scenarios, and historical averages.
Optimal Blue offers robust workflow automation and a secure platform that is very scalable for all team sizes. User reviews highlight Optimal Blue’s ease of use, and its ability to get competitive rates from lenders.
With Jungo’s PPE Integration, you can run Optimal Blue’s quick and full quotes from within Jungo making loan pricing and automated borrower and partner updates seamless.
Mortech’s PPE platform gives you and your borrowers all the information you both need to make well-informed decisions. The Mortech PPE provides a fully automated and accurate pricing engine, and the ability to compare multiple loan scenarios. It also integrates with most other industry software platforms.
Loan officers will have the full picture about loan pricing options with a tool that lets you view hundreds of investors’ rate data, all on a single screen. Mortech is owned and operated by Zillow Group, the online real estate giant.
Lender Price offers pricing on all mortgage types, including conforming, non-conforming, non-QM, and speciality loans. This feature could be especially useful to those loan officers who regularly work with less traditional borrowers. They also offer built in compliance checks and capital market tools.
Another loan officer focused benefit to Lender Price’s PPE platform is its digital flyer tool. The platform will create elegant, custom digital real estate flyers that include a mini-pricer. Plus, their API integration works with any LOS or third-party mortgage system (including Jungo!).
OpenClose’s DecisionAssist is an Integrated Loan Product Pricing Engine. It allows loan officers to instantly determine a borrower’s eligibility and their pricing options. Their services team is a group of experienced mortgage specialists. So, their guidelines and pricing are always up-to-date.
Loan officers can also create professionally branded customer-facing web portals. Partners can utilize these to make decisions about loans, store documents, and manage pipelines. DecisionAssist also interfaces smoothly with third party software platforms like CRMs and more.
Mortgage pricing is one of the very first steps in a great loan process. If you’re not using a PPE, you’re missing out on an incredible way to streamline your business. Providing accurate pricing to potential clients will encourage them to choose you as their loan officer.
If you’re looking for a software solution that will help you generate new leads, close more loans, and generally kill it as a loan officer, check out a free demo of Jungo today!