NYLX, a product and pricing technology vendor in the mortgage space, has launched a new feature for lenders to better price their loan packages to the secondary investment market.
The new pricing tool, LoanBook, will build beyond best-execution pricing at the point of origination by monitoring loans in process, and “actively” comparing them against loan programs currently available on the market, and automatically alerting a secondary manager of pricing improvements, according to NYLX.
LoanBook, which was released on a limited basis over the summer, is offered as a Web-based subscription service and works by searching a preloaded database of investor programs for an optimal yield that based on each loan’s criteria. Secondary managers can set alerts for when loans reach a specific profit threshold based on dollar revenue or yield spread, according to NYLX.
Users then have the choice to lock or float rates based on the detailed, dollar-valued yield listed for each loan. “Lenders get higher profits without adding more volume, more staff, or increasing costs to the borrower,” says John Alexander, president of NYLX.
