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The mortgage ecosystem is fractured – Here’s how to fix it

How SitusAMC and ReadyPrice plan to bring balance

An ecosystem is a complex network of organisms that live and interact in a mutual environment. For that ecosystem to maintain and survive each organism must work together in a symbiotic manner. The same can be said about the mortgage industry as an ecosystem, and its technology as the coral reef. In order for brokers and lenders to work together in symbiosis as organisms of this ecosystem, the technology must also allow for it. If mortgage professionals use different systems and software that don’t work well together, how can the mortgage ecosystem survive? 

“Right now, the mortgage ecosystem is fractured. It’s broken up into little pieces, from a technology point of view,” ReadyPrice CEO Rick Soukoulis said. “There’s mortgage point of sale software, product price eligibility, CRM and LOs. There are all of these components, but they don’t exist in one place and can’t be provided to the broker as a universal portal.”

Fractured mortgage ecosystem 

In today’s market, mortgage originators are forced to intertwine different software and technology to support the lending process from start to finish. Because of this, originators are having to mimic technology companies instead of focusing on buying and selling, underwriting credit risk and servicing loans. 

“No one system today can handle pricing across the entire life of the loan,” Soukoulis said. “This is further exacerbated by a broader origination landscape that forces lenders to cobble together technology, operational and financing solutions from a variety of players throughout the market to support the lending process from start through close.”

To make the mortgage process more of a cohesive ecosystem, there needs to be a seamless platform that connects originators and the secondary market. 

SitusAMC & ReadyPrice

In 2021, SitusAMC, a provider of technology and services to the real estate finance industry, acquired ReadyPrice, a mortgage technology company that connects mortgage loan originators (MLOs) and lenders to streamline loan origination. 

SitusAMC provides a one-stop platform to provide scale and increased efficiencies in competitive markets. With ReadyPrice, mortgage loan officers (MLOs) can manage and choose their pricing, run automated underwriting, and deliver approved loans in a timely manner. 

The two companies combined their technology to create a symbiotic relationship between mortgage brokers and mortgage lenders. Through some of their services — SureLock, ComplianceAnalyzer and ProMerit — lenders gain a more efficient origination process, as well as a more seamless transition into the secondary market and the ability to engage investors.

A benefit to brokers and lenders

In today’s hot housing market, borrowers have more competition when it comes to obtaining and retaining clients. For brokers to have an advantage over the competition, they need to be as efficient as possible. With ReadyPrice and SitusAMC, brokers have a platform to find the best rates for their customers, retrieve customer credit and deliver approved DUI directly to their lender. Lenders benefit as well, being able to expand their reach, improve the quality of those loan submissions and ultimately convert more loans. 

ReadyPrice connects MLOs and wholesale lenders to discover, match and deliver loans. SureLock, a pricing engine, enables wholesalers to allow brokers the ability to price individual deals in a timely manner. ComplianceAnalyzer facilitates comprehensive loan-level reviews including federal and state audits based on license types, exemptions and preemptions. ProMerit manages, tracks, funds and secures repayments while supporting audit and compliance requirements. 

“We have a unique value proposition that no one in the industry has the ability to match today,” Soukoulis said. “And that’s completing the transaction from the ultimate security advisor, all the way to the brokers. MLOs have the ability to manage and deliver approved loans with the click of a button, creating a win-win for brokers and lenders alike.”

ReadyPrice and SitusAMC take the entire origination side of the mortgage industry, and connect in a way that is simple and universal creating symbiosis between brokers and lenders. 

A solution for the secondary market

An efficient bridge between originations and the secondary market is critical for end-investors who are looking for direct access to originations to lower their effective acquisition costs and gain access to high-quality newly originated assets. 

“Originations are looking for surety of execution and profitable origination markets that are not capital intensive,” SitusAMC CEO Michael Franco, said. “We can work with lenders to prepare their portfolios for secondary market trading through due diligence services, valuations and brokerage activity. In the same way, we can work with investors to identify, value and review targets for acquisition.”

Lenders can utilize the RateLock system to lock loans that are then acquired by secondary market participants, who in turn securitize rated and unrated RMBS. RateLock streamlines the management of the entire conduit process including products, pricing, adjustments, sellers, locks, announcements, confirms, notifications and funding schedules. The platform also allows for deep customization, making it easier to structure how sellers interact with the platform and product.

Together, ReadyPrice and SitusAMC connect new origination markets directly to the secondary market by combining their technology offerings, connectivity throughout secondary markets and ability to provide processing, underwriting and due diligence services.

“In the next 24 months, the entire ecosystem will have been changed. Brokers will have a universal transaction portal to conduct business with all of their lenders in one place,” shared Franco. “That process of communicating and transferring data into their legacy systems and those legacy systems will transact with SitusAMC secondary market systems.” 

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