Two Internet-based services promise to give mortgage brokers either the best loan program or the best pricing.
Sollen Technologies' Lender Online has developed a loan search engine that generates results that include rates, pricing and investor guidelines. The mortgage technology firm also allows the loan originator to manage their pipeline, register borrowers and submit rate lock requests.
The parameters required to run a search for a 30-year full document conforming loan are loan amount, appraised value or purchase price, FICO score and bottom ratio. A search can be narrowed by inputting additional data including; loan type and purpose, loan-to-value, lien position, and property type and location.
Sollen spokesman Andrew Marsanick told MortgageDaily.com that lender results are ranked by "lowest rate, closest to par, at 30 days." However, searches can be led by specific rates as well.
The search engine produces results from 40 investor's correspondent regions and the system supports over 24,000 loan products, Marsanick said.
As an example, MortgageDaily.com ran a search using a loan scenario of a $200,000 conforming 30-year fixed loan with an 80 percent loan-to-value, 750 FICO and a bottom ratio of 36 and received matches from nine investors. And of those nine, almost 50 loan products were displayed with rates, pricing, along with a PDF of investor product guidelines.
Sollen is in the process of simplifying the system even further by eliminating product categories so an originator could simply input a few loan parameters and search from every product available, Marsanick said.
The monthly cost of the program is $1800 per lender or company, accommodating as many as 50 to 100 users for most of their clients, Marsanick said.
Program categories include conforming, nonconforming, Alt-A and niche products as well as nontraditional and second mortgages.
Another loan search engine, LenderLab.com provides loan searches from over 400 lenders and over 12,000 non-conforming, sub-prime, niche and commercial loan products and coming soon -- hard money, according to General Manager Doug Anderson.
Anderson told MortgageDaily.com that because of liability and legal reasons, the company feels the rates should come directly from the lender. Results are currently without a rate quote and randomly list all the lenders that can do the loan, along with the product guidelines.
They are currently surveying brokers to find out who the brokers' top lenders are "so those lenders always show up top of the list for the logged-in broker," he said. "We are also about to launch a way to facilitate brokers getting signed up with new lenders quickly."
And rate options are about to get an upgrade as well, he said.
"We are about to implement a rates solution that allows you to see the loan scenario in our find results list, and click a rate icon to be passed directly to the lender's rate page," Anderson explained in an e-mail statement.
Running a search requires five pieces of data; lien position, loan purpose and amount, location and property type. Additional fields of data may be entered to further narrow searches.
MortgageDaily.com ran a loan scenario for a $200,000 purchase loan on a single family residential home with an 80 percent LTV and a borrower FICO of 500. The results yielded 46 lenders with 1410 loan product matches.
Another company that provides wholesale loan searches is Lion Inc.