LoanScoreCard, a provider of automated pricing, underwriting, and compliance solutions headquartered in Irvine, California, has introduced LO Connect, an integrated automated distribution solution for aggregators and wholesale lenders who source non-agency mortgage loans from third-party originators (TPOs) and correspondents.
LO Connect combines LoanScoreCard’s Custom AUS (automated underwriting system), product and pricing engine (PPE), and a unique integration with loan origination systems (LOSs). According to LoanScoreCard, the first version of LO Connect is now available for use by multiple wholesalers within Calyx Point; it will eventually be made available on other LOSs.
LO Connect helps lenders determine who to sell specific loans to and who to and which investors to develop relationships with, in addition to eliminating the likelihood that an originator will quote wrong information to a borrower. For wholesalers and investors, LO Connect provides a more efficient way to distribute and promote their products and pricing offerings to originators; it also reduces the “false starts” that lead to higher operating costs, regulatory issues, and bad relationships with correspondents and brokers.
Any Point originator can use LO Connect without first having a relationship with an investor or putting together a full loan package, which saves time and effort for both originators and investors. It can also be implemented in as little as 60 days, since it operates independently from the wholesaler’s submission portal. With LO Connect, TPOs can see branded product and pricing offers from participating wholesalers with Point. Once the TPO finds a product and fully-adjusted price they like, they can run “upfront decisioning” against Custom AUS and receive an in-depth findings report which will give them an early indication of whether or not the loan will be approved by a specific investor.
“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.”