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LendingArt Messenger Alert Service Getting Great Reviews September 26, 2008

Posted by Howard in 1.
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We recently conducted a survey of current Messenger Alert users and here are some of the results:

When asked to rate the Messenger Service

  • 88% of respondents rate the VALUE Messenger provides as Excellent or Good
  • 90% of respondents rate the TIMELINESS of the Messenger alerts as Excellent or Good
  • 85% of respondents rate the QUALITY of the Messenger alert information as Excellent or Good

When asked how many Messenger alerts do they currently receive

  • 95% of respondents receive 2 or more alerts each day (78% receive 3 or more alerts each day)

When asked how often they would like to receive Messenger Alerts each day

  • 83% of respondents selected “No Maximum – As soon as updates are available”

If you haven’t signed up for The Messenger Alerts yet, please visit the Messenger and set up your account.  You’ll be glad you did.

NYLX Launches our New Web Site September 23, 2008

Posted by Howard in Sales & Communication, Technology.
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Well folks, it took some doing, but the new NYLX.com web site has finally launched.  While we’re making a few tweaks, the site has just about everything we envisioned from the beginning.  We’re very excited because within hours of the launch, we received many emails with positive feedback, and inquiries from companies who can benefit from the NYLX platform.

When you visit http://www.nylx.com/, be sure to check out the following:

Case Studies – When you build a company, you want to focus on providing products and services that help your customers succeed.  With these informative case studies, we try to demonstrate how NYLX has helped different companies address different challenges.  The initial case studies feature Connecticut Home Mortgage, The Money Store, Mortgages Unlimited, Real Estate Mortgage Network, Rockland Trust Company, American Mortgage Specialists and Platinum Credit Services.  We will be releasing addition case studies in the future, so be sure to check back to see additional ways NYLX is helping our customers succeed.

White Papers – In an effort to educate the industry about the importance of technology and new business strategies, we’ve written two white papers that are available for download.  The first white paper entitled “Product and Pricing Engines Now An Essential Tool” walks you through the benefits of using PPE technology to dramatically improve your business results.  The second white paper entitled “Engaging Your Loan Prospects Online” talks about new methods of engaging consumers on your web site to encourage them to do business with you.  Both papers provide valuable information to anyone in the mortgage business, so I hope you will give them a read.

ROI Calculator – One of the best features of the new site is our Best Execution calculator.  You can select one of three previously defined loan scenarios and instantly review the results and see how much money you could be losing in commission by not pricing your loans using NYLX.

I’d like to thank everyone who had input to the new site and who put many hours of hard work into launching it on time — well, very close to the original deadline.  :-)

If you are interested in seeing more, we’d be happy to provide you with a demonstration of the NYLX platform.

 

It’s very rewarding to help customers August 6, 2008

Posted by Howard in Sales & Communication.
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As any entrepreneur will tell you, starting a company from an idea and building it to be a leader in its industry, is very difficult. Lots of time and effort, many bumps in the road along the way, successes, failures and all that kind of stuff.

But I think the most satisfying and rewarding thing to me is when a NYLX customer takes the time to tell us how we help them succeed in their business. After all, our goal is to build solutions that help our customers succeed in business. If we accomplish this task, our own success won’t be far behind.

Thank you Jolene for taking the time to send us your comments below.

“Homestead Mortgage relies on NYLX to assure accurate pricing and guideline updates for our Correspondent Division and we have been very impressed with their user-friendly pricing engine and continual positive changes and enhancements. The NYLX team is very helpful and efficient and always available for questions and open to suggestions.

With all of the Industry changes over the last year, NYLX has proven themselves to be a reliable, resourceful, and accurate tool that has been a major component in contributing to the success or our Correspondent Lending Division.”

Jolene Goosman
Internal Loan Consultant
Homestead Mortgage

 

 

 

The Equation for more money on every transaction July 24, 2008

Posted by Howard in Point of Sale, Technology.
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Accurate investor data + Best execution loan pricing technology = Monster ROI

 

There aren’t too many places where you can achieve returns on investment that are consistently above 1000% with minimal risk.  But with NYLX’s proprietary best execution product and pricing technology, that’s just what our customers are seeing on a regular basis.

 

What does best execution mean and what can it do for you?

 

The industry defines “best execution” as “The responsibility of brokers to provide the most advantageous or best price, order execution for customers.”

 

So what does this mean exactly and why is it significant to the mortgage origination business?

 

Simply put – it means more money to the loan originator on every transaction.  And who wouldn’t like more money today.

 

Let me show you how NYLX’s proprietary best execution technology actually delivers monster returns for anyone who uses it.

 

We took a random sampling of 10 independent loan scenarios and did some analysis.  Here is what we found.

 

Combined volume               $3,948,500

Average Loan Amount           $394,850

 

Revenue for loan originator:

Best execution       $63,170

Second position     $56,107

Third position         $49,689

Forth position         $45,533

 

Average basis points difference from the best execution position

 

Second position     18 bps less than best execution or $710 per loan

Third position         34 bps less than best execution or $1,342 per loan

Forth position         45 bps less than best execution or $1,776 per loan

 

For conservative measures, let’s compare the best execution to the second position:

 

  • Best execution makes $710 more per loan than the second position.

Now let’s run an ROI calculation assuming the average user license fee for a NYLX account is $60 per month:

 

  • If a loan originator only closes one loan a month the ROI is (700-60) / 60 = 1067%
  • If a loan originator closes  two loans a month the ROI is (1400-60) / 60 = 2233%
  • If a loan originator closes three loans a month the ROI is (2100-60) / 60 = 3400%

 

With returns like this, why would an originator not utilize NYLX’s best execution pricing engine?

 

We believe that all originators will be using this type of solution within a few years in order to survive and thrive over the long term.

Product and Pricing Engines (PPEs) – Not a luxury anymore… Now a necessity July 22, 2008

Posted by Howard in Point of Sale, Technology.
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In this complex, rapidly-changing world of investors, guidelines, and information, having a product and pricing engine is no longer a luxury  – it’s a Necessity!

 

The challenges facing the participants in the mortgage industry today are overwhelming.  Fierce competition, constant changing of investor programs and guidelines, customers consistently demanding the best rates (which they should) and loan originators search for the best commission, all point to the need for an automated and simplified solution.

 

Even with all of these issues, it still amazes me that many mortgage originators and companies are still either using paper rate sheets, or they are manually entering the same information on multiple investor websites to qualify and price a loan scenario.

 

Why?

 

We compiled some statistics from prospects who complete the demo request for at NYLX.com.
 

Here are the results when we ask the question “How are you pricing loan scenarios today?”

  • 50% of the leads state they re-key information into a few investor websites
  • 30% state the old fashioned way, by rate sheet
  • 15% state they are with another pricing engine
  • 5% other

 One answer we received to the question “What prompted you to call NYLX?” is becoming more and more common:

 

“My company is adding more lenders and it is becoming tedious to keep up with all the adjustments on each investor.”

 

When you consider how affordable the solution is, it becomes a no brainier.  NYLX offers a few affordable solutions.

  • One option is to utilize LendingArt’s Free Eligibility system found at http://eligibility.lendingart.com.
    This system offers complimentary loan legibility for wholesale investors and a non subscription based, pay-as-you-go loan pricing engine. This solution is unique in the industry.
  • For correspondent mortgage bankers, the NYLX LoanDecisions product is perfect. With subscriptions as low as 29.95, its affordable to all and is guaranteed to maximize revenue.

The benefits of the NYLX Product and Pricing engine are clear and measurable and will allow you to provide better service to your customers, make your operation much more efficient and help you make more money immediately.

  • Save Time
  • Eliminate Errors
  • Place More Deals
  • Make More Money

Contact one of our specialists to find out how you can leverage these valuable tools.

Advanced Search Tool for Hard-To-Place or Niche Loan Scenarios July 21, 2008

Posted by Howard in Point of Sale, Technology.
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Looking for more complimentary tools and information to make your job easier?  Try the LendingArt Scenario Desk.

 

For years I’ve been asked questions like, “Which investor does this?” or “Which investor has a program for that?.”

 

Realizing it is very difficult to keep up with the constantly changing investor guidelines, I decided to create a tool that allows users to get answers to loan questions in seconds, and for Free.  

 

The Scenario Desk can be found on the main page of LendingArt’s Investor Information Center, also called the “IIC”.

 

The Scenario Desk, an advanced search tool for hard-to-place or niche scenarios, allows users to get instant information on investor guidelines and policies to determine eligibility for niche loan scenarios across multiple investors. To navigate, simply click on one of the seven main categories and then select a topic from the sub-category. For example, If you’re looking to see how investors handle “Non-Traditional Credit”, just select the main category “Credit” and then click on the sub-category “Non-traditional Credit Report”.

 

See example below.

Credit provider, Platinum Credit, goes beyond the “Mark” July 15, 2008

Posted by Howard in Best Practices, Point of Sale, Technology.
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Don’t let the name fool you. Platinum Credit Services is much more than that. With its new line of screening services and the recent announcement of its seamless integration with LendingArt’s Free Eligibility and Pay-As-You-go Best Execution pricing system, PCS is leading the charge to ensure loan officers have the tools to close more mortgage loans while helping consumers improve their credit scores.

  

With the new integration, each Platinum credit report now features a Free Eligibility Link which automatically and seamlessly transfers the credit score information into LendingArt’s secure online eligibility’s system. Users can then obtain up-to-date loan eligibility information in real-time, streamlining the loan discovery process.

   

Platinum Credit also features an enhanced service to its members that can help improve a borrower’s credit score. With “Credit Assure Score”, the system recommends changes the borrower can legitimately make that will positively increase the scoring on the credit report. The Credit Assure Score is passed to the LendingArt system and allows the originator to view the eligibility and pricing results based on the original score or based on the “Credit Assure” results. This is a very exciting new service. As a borrower’s FICO Scores improve and then seamlessly run through LendingArt, originators are provided with an increased number of potential loan options that will improve the likelihood of winning the opportunity and increase profits at the same time.

   

With the integration between Platinum Credit’s scoring tools and LendingArt’s Eligibility and Pricing technology engine, the mortgage industry has another “killer app” that loan originators are looking for to increase their productivity and ultimately provide the most appropriate products and services to the consumer.

 

Did our government just save the world from Armageddon? July 14, 2008

Posted by Howard in Industry Commentary.
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First it started with Bear Stearns and now Fannie and Freddie?

 

It was quoted in todays The New York Times article as “The failure of just one of the companies could be catastrophic for economies around the world.”

 

WOW!  What’s next?  

 

They used to define the G.S.E.s as government-sponsored enterprises.  I now think its time they change that to government-backed or government-insured or try this “government-owned” enterprises. Which do you like?

 

The reality is the US taxpayer will pay for this just like they did on the savings and loan crisis of the early 90’s.

 

The last sentence of the New York Times article stated “Officials said the proposed investment and lending elements of the plan were to last two years”.  Is this the government’s insight as to how long this crisis could last?  Buckle-up.

 

One last thought. The government stepped in to save Bear Stearns and now the G.S.E.s. Is this the start of communism and the collapse of capitalism in the U.S.A?

 

Tom Millon of Capital Markets Cooperative commented in his weekly newsletter “The agency debacle may turn out to be a good thing for the mortgage industry.  Evidence that mortgage-to-Treasury spreads tightened amidst the agency madness last week.  That’s right.  Mortgage rates dropped relative to Treasury yields.  It may seem counterintuitive, but since a healthier-than-ever portion of the spread is due to credit risk these days, a government takeover/backing of the agencies was perceived as a reduction of credit risk.  The spread closed at approximately 2.50%, and may fall further as Sunday’s backstop proposal becomes reality.”

 

Get notified when investors change information with the “Messenger” July 12, 2008

Posted by Howard in Point of Sale, Technology, Tips.
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Complimentary Tools for Loan Originators, Processors and Underwriters.

NYLX launched LendingArt.com in May. The platform is getting tremendous traffic and traction. Why? Because there are 3 complimentary (Yes FREE!) services that offer mortgage originators great value and much needed tools in today ever changing market. The services include: An Automated Free Eligibility System (loan pricing is on a pay-as-you-go basis), A Investor Information Center that includes a loan Scenario Desk and a Messenger Service.

Although LendingArt offers other valuable resources that I will talk about in future posts, today I will tell you about one of the Free offerings – The MESSENGER service.

There is nothing like this in the industry. This proactive messenger service delivers critical information that keeps you informed and up-to-date on changes to investor guidelines, program changes, risk-based price adjusters and investor announcements and bulletins. Every loan officer and processor should sign up. I don’t know why you wouldn’t want this type of service.

Get signed up today at http://messenger.lendingart.com/

Here is an example of an alert notification.

Investor: PHH
Type: Guideline Information
Title:
Description: Effective July 11, 2008, the Declining Markets policy will be updated to allow My Community Mortgage loans in Michigan and Ohio at a 95% LTV / CLTV for 1-unit purchase transactions with a representative credit score > = 680. Currently these are restricted to a 92% LTV / CLTV when the property is located in a declining market.

Investor: Mortgage Services III
Type: Price Adjustments
Title:
Description: Effective Monday July 14, 2008, FHA Upfront MIP will now be issued via risk based premium amounts. Please see investor’s online guide for new FHA Upfront MIP tables.

Investor: SunTrust
Type: Guideline Information
Title:
Description: Great News!! Effective immediately, SunTrust Mortgage is excited to announce that the “Agency Jumbo” loan program is now open to be underwritten by SunTrust and has been enhanced to include the eligibility of the following: Interest Only Fixed Rate transactions, and 7/1 & 10/1 LIBOR ARM (fully amortizing and interest only) transactions. As a reminder, ALL “Agency Jumbo” loans MUST be processed through Fannie Mae’s Desktop Underwriter (DU) and must receive a DU “Approve/Ineligible” recommendation. Additionally, Correspondent lenders with Expanded Delegated Underwriting Authority and acceptable Mortgage Insurance (MI) Contract Underwriters are eligible to underwrite this loan program. Traditional underwriting, DU Expanded Approval recommendations (regardless of the EA Level), and LP processing are not acceptable

 

 

How NYLX defines m3 July 10, 2008

Posted by Howard in Best Practices.
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The country’s money supply data is recorded and published in order to monitor the growth of the money supply. There are varying measures of money supply as defined by the Federal Reserve.

 

M0:  Physical currency (the smallest measure of money)

 

M1:  M0 + demand deposits

 

M2:  M1 + Small time deposits (less than $100,000), savings deposits and non-institutional money market funds

 

M3:  M2 + All large time deposits, institutional money-market funds, short-term repurchase agreements. (the broadest measure of money)

 

NYLX defines M3 as:

 

Make More Money

 

LoanDecisions, NYLX’s loan pricing engine, incorporates a best execution technology that is guaranteed to make loan originators more money on their originations.