NYLX, a provider of automated mortgage data applications, has now programmed Freddie Mac servicing released pricing into its LoanDecisions product-eligibility and loan-pricing platform.
NYLX's decision to expand its support of Freddie Mac pricing was inspired, in large part, by input from Spencer, Iowa-based Northwest Bank.
‘When Freddie Mac pricing became very favorable in late 2008, our demand really increased,’ explains Eric Schaub, vice president of mortgage banking at Northwest Mortgage. "In serving both rural and urban customers, we found that in some markets we needed to retain servicing to meet customer needs, whereas in other markets we could release servicing and extract income up front. The pricing process, however, became very convoluted."
The bank could price a loan scenario for Freddie Mac servicing retained and other investor products within its pricing engine, but needed to re-enter that same loan scenario on the Freddie Mac Web site to get servicing released pricing, Schaub says.
"Now that we have both in our LoanDecisions pricing engine, we can easily compare products and adjust our margins to drive activity," he adds.