IRVINE, CA--(Marketwired - July 12, 2016) - LoanScoreCard®, a leading provider of automated pricing, underwriting and compliance solutions, today introduced LO Connect™, an integrated automated distribution solution for aggregators and wholesale lenders sourcing non-agency loans from third-party originators (TPOs) and correspondents. LO Connect combines the power of LoanScoreCard Custom AUS (automated underwriting system); their product and pricing engine (PPE); and a unique integration with loan origination systems (LOSs). The first version of the product has been launched for multiple wholesalers within Calyx Point® and will eventually be available on other LOSs as well.
LO Connect allows TPOs to see branded product and pricing offers from participating wholesalers within Point. If the originator likes an eligible product and fully-adjusted price, they can run "upfront decisioning" against Custom AUS and get back an in-depth Findings Report which delivers an early indication of the likelihood that the specific investor will approve the loan. Uniquely, any Point originator can use LO Connect without first having a business relationship with the investor or needing to put together a full loan package. This saves time and effort for both the TPOs and the investors.
From an originator's perspective, it helps the lender determine who to sell specific loans to and which investors to develop a relationship with. It also eliminates the likelihood that the originator will quote the wrong information to the borrower.
For wholesalers and investors, LO Connect is a more efficient way to distribute and promote their product and pricing offerings to originators, and it reduces "false starts" that can increase operating costs, require HMDA filings and foster bad will with correspondents and brokers.
Because LO Connect operates independently from the wholesaler's submission portal, it can be implemented in as little as 60 days.
"LO Connect provides automation and visibility that many TPOs don't have at all today," said Ben Wu, executive director at LoanScoreCard. "Because LO Connect is run at point of sale, TPOs receive an early look into whether a loan file is likely to be accepted by a wholesaler, without taking up anyone's time-particularly the borrower's or the wholesaler's, who, if they see the file prematurely, have a tremendous burden to actually underwrite it, render a decision, issue disclosures, etc."
LoanScoreCard® is a leading provider of automated underwriting and loan pricing solutions designed to meet today's regulatory challenges and capitalize on today's market opportunities. LoanScoreCard Custom AUS streamlines non-agency mortgage underwriting, eliminating manual processing delays and time wasted on unqualified loans, ensuring that loans are approved and consistently documented to satisfy ATR and fair lending compliance. Custom AUS can be tailored to capture each lender's specific credit policy and render underwriting findings that demonstrate a consistent loan manufacturing process to auditors and investors. LoanScoreCard LO Connect publishes wholesale and investor products and pricing to third-party originators, providing TPOs with a real-time, interactive tool to determine borrower fit and price for non-agency programs, and enabling them to submit qualified loans to wholesalers and investors with confidence. Additionally, as the industry's first QM engine, LoanScoreCard helps institutions address CFPB regulations, rendering more than four million QM Findings Reports to date. For more information, visit LoanScoreCard.com or call 800-617-0892.