The Proactive LOS Will Win Out

As they say, the early bird gets the worm. Similarly, the LOS that stays ahead of market dynamics will win out. For example, Mortgage Builder has upgraded to its LoanXEngine product eligibility and pricing technology in order to help lenders become more efficient in the hedging and secondary marketing aspects of their business. The enhancements come at a time when lenders are dealing with reduced profits and higher origination costs due to increased regulatory requirements and declining loan volume. Here’s the scoop:

LoanXEngine offers full eligibility, best execution pricing, CRM, lead management, rate watch, rate sheet generation and web point-of-sale in one web-based system. LoanXEngine was launched in 2007 by Alan Johnson, who sold the company to Mortgage Builder in late 2012 and serves as executive vice president and head of the LoanXEngine division of Mortgage Builder Software, Inc. The standalone LoanXEngine technology was also integrated into the Mortgage Builder Suite of products in 2013, joining the Architect LOS, the Colonnade LSS and their complementary modules to create a true “front end-to end-to end” mortgage technology platform.

LoanXEngine’s enhancements include upgrades to pricing reports that enable secondary marketers to obtain optimal financial execution in loan sales, whether on a per-loan or multiple loan basis. The latest release also includes a new report created to boost hedging efficiency and results, markedly improving profitability for its users through better secondary marketing outcomes. LoanXEngine’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.

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. It was especially alarming since it took the average profit per loan from $1528 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, who spent years developing the original LoanXEngine technology. “LOS systems like Mortgage Builder’s Architect can help them become more efficient by streamlining origination and eliminating paper, but improving the secondary marketing side of the business can have dramatic impact on profitability,” he notes. “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. “Whether lenders are using Mortgage Builder or another LOS, they can benefit substantially from the new improvements to LoanXEngine, particularly when the CFPB’s QM rules go into effect in January.”

About The Author


Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at