On the retail side, a loan officer can run LoanScoreCard on the front-end to get an early indication as to whether the borrower fits the guidelines for that loan. Depending on the results of the findings report, the file can be adjusted and run again.
On the wholesale side, clients, like Finance of America and Oaktree Funding, have incorporated this technology into their portals as eligibility engines. So, the broker can come in, run a quick scenario and get the product eligibility and rate information. When they are ready to submit the loan, all they have do to is hit a button to run AUS, upload the file, reissue credit and get a decision. It’s an elegant and efficient process.
Recently a senior executive at one of the nation’s largest lenders explained why her company has integrated LoanScoreCard into its non-QM origination platform. She noted that pull through on their retail book of business for a standard 30-year mortgage is in the 70 80% range. With non-QM, however, it drops to 45-50%, because the borrowers are more unique and the LOs and brokers don’t always understand who will qualify.
“It comes down to the 80/20 rule: 20% of your loan officers are going to learn guidelines and understand it and then the other 80% are not and they’re just going to lob loans in,” she said. “The easiest way to solve that is to put a resource like an AUS at the beginning of that process to help people figure out whether their scenario works.”
LoanScoreCard technology is available in Point and Path, as well as several other leading Loan Origination Systems, and the list is growing.