LoanScoreCard, a provider of automated pricing, underwriting and compliance solutions, has 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’s Custom AUS (automated underwriting system), product and pricing engine 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 that 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, the company claims in a press release.
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 Home Mortgage Disclosure Act 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.