The focus now: “Now what’s happening in this third phase they’re evaluating their technology stack and, on the pricing side, they’re looking at a solution that measures ROI. Ever since Black Knight bought Optimal Blue, Optimal Blue increased their costs. You have to – it’s one of those things that when you’re buying a solution for billions of dollars you have to justify the spend because they didn’t just pay billions of dollars, they financed the acquisition. In order to pay that back, they’ve got to increase the user costs.”
According to Alimi, that’s where Lender Price comes in. “We’re the next modern solution out there,” he asserted. “And we can provide a solution that’s cheaper than theirs and that has features that automate the pricing side of things, the workflows, the lock management, the lock policy, the margin management. So, when you’re measuring ROI and the effectiveness of implementing a new solution today, you look at it through the lens of different perspectives.”
One such perspective would be that of brokers or loan originators: “Do I have a pricing engine that allows me to see more products?” Alimi asked rhetorically. “There are trillions of dollars in home equity but we’re the only solution out there that can provide you with a breadth of products whether it’s QM, traditional loans, non-QM, non-traditional loans, non-traditional financing and home equity. When you’re a loan originator talking with a borrower, you want to have a tool that gives you a lot of options. From the broker’s and loan originator’s perspective, it’s having a product where they’re able to search more products and learn about more products because the more products that they learn of, especially in the purchase market that we’re in, they’re able to educate the borrower. For example, look at bridge loans. ‘I love this house that I want to purchase but I got to sell my house, but I don’t want to lose the opportunity of buying that house.’ So, what do you do? You get a bridge loan.
Lender Price also considers the investor’s perspective: “For investors, there’s DSCR, there’s buydowns, there’s 3-2-1 buydowns, 2-1 buydowns where essentially you can have the seller finance the cost of giving you a low rate but you’ve got to have a solution that offers all those programs and tells you ‘you’re looking at this particular program. Have you ever thought of this other program?’ That’s what our solution does.”