Part of a good lender’s job is to provide brokers with tools to help them put together solid loans as quickly as possible. That’s especially true in the non-QM world, where loans can be more complex and challenging.
To meet that obligation to brokers, Citadel Servicing Corp. (CSC) recently went live with two pricing engines.
“For wholesale, we just went live with a company called LenderPrice,” said Will Fisher, senior vice president and national sales and marketing director for CSC. “That launched about a month ago, and we put a big push behind it. We’re really excited about it.”
LenderPrice provides real-time product pricing and eligibility for more than 50,000 loan products. Powered by a machine-learning algorithm, LenderPrice can provide pricing information across devices.
“For correspondent, we use a company called LoanNEX,” Fisher said. “While it’s not a full-blown underwrite, it will give you some findings to help you prep your file when you’re putting together a loan to sell to us.”
LoanNEX makes use of a standardized credit descriptor, combining industry-standard ratios of affordability, liquidity, collateral value and credit history, to price loans.
Access to these pricing engines gives CSC’s originators more flexibility in helping their customers, Fisher said.
“It’s 24/7 pricing. If you’re a correspondent lender, you might have a buyer on the phone, or something you need to get pricing for right away,” he said. “You might not have time to fumble through rate sheets or wait for the lock desk at a lender. This gives you access to 24/7 pricing that’s accurate. You can set your watch by it.”
If the pricing engine gives originators favorable results on a loan, Fisher said, they can call CSC, “and we can walk you through the rest of the scenario to see if it’s going to be a fit or not.”
But even scenarios that don’t come up aren’t necessarily lost causes in the world of non-prime, Fisher said.
"If you should find a scenario not populating with a result, the pricer works off ratios and measured characteristics. An LO should call their rep for special circumstances that aren't conventional. There might be another structure to it," he said. "But if you're in a pinch, you can jump on, put your scenario in, and move on."