The company says the upgrade will help lenders become more efficient in the hedging and secondary marketing aspects of their business.
LoanXEngine's enhancements include upgrades to pricing reports for secondary marketers to obtain financial execution in loan sales, whether on a per-loan or multiple-loan basis, says the company, and a new report created to boost hedging efficiency and results, improving profitability for users through better secondary marketing outcomes.
The product's new Hedge/Pricing Management Report displays current best execution on a loan or searches for pricing on a specific target rate, presenting investors by name, product and all loan level pricing adjustments for transactional precision and speed, according to Mortgage Builder.
The company says a recent report from the Mortgage Bankers Association (MBA) showed that the third quarter of 2013 saw a 37 basis point drop in loan production profits for its members – the fourth consecutive quarterly reduction. Mortgage Builder says it is especially alarming because it took the average profit per loan from $1,528 in the second quarter down to $743, due to skyrocketing costs for quality control and compliance.
"Lenders are struggling to improve profitability, as shown by the report from MBA," says Alan Johnson, executive vice president and head of the LoanXEngine division of Mortgage Builder. "LoanXEngine's new capabilities are specifically designed to result in improved hedging and trades to enhance the bottom line at a time when production expenses are at record levels," he says.