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bllinc2002
358 Posts |
 Posted - 12/28/2007 : 08:31:30 AM
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There are some websites that loosely refer to themselves as "prequal engines" when they offer no more technology or capability than autotrader.com has when you're trying to find a 1992 Toyota Camry with less than 100,000 miles.
Autotrader.com (a fine site for car shopping) has created keywords, such as "Toyota", "6 Cylinder", "Red", "Automatic Transmission", etc. When car shopping, you simply select keywords from drop down menus and Autotrader displays a list matching your selection criteria.
Niche Matchers for the mortgage industry are essentially no different. They might even call it "filtering" or choosing your lender based on niche, but its really just "niche matching" and is seriously flawed for lender finding. This is why we call them "Niche- Matcher Broker-Catcher Money-Snatchers"
Here's how Niche Matchers work:
A) Niche Matcher sites create a keyword list of lender niches and criteria, perhaps organizing the variables into categories.
B) Niche Matcher sites often depend on an AE to register and choose from the list of keywords that apply to his/her bank.
C) Brokers enter a scenario, or choose from a predefined set of keywords to find a lender with the chosen niche or lender criteria. And Wait for an AE response.
D) Niche Matcher sites depend completely upon the AE to actually qualify and price the scenario. Hence the waiting.
Here is why Niche Matchers are seriously inadequate for the mortgage industry:
1) THEY'RE INACCURATE: Lender Guidelines are often a very complex set of business rules with interrelated variables.
Example Lender Guideline:
"FTHB cannot be <36 months B/K, or <550 Fico Full Doc, or <630 Stated, and cannot be Stated W2, and must have 3 Months PITI, and if no 3 months PITI then + 50 bps, and must be SFR or 2 unit, and must be primary residence, and must have Management VOR with => 12 months cancelled checks, cannot be private VOR, and if Stated must be LTV <= 90%, and if Full Doc must be <= 95%, and cannot be GOE, and Down Payment must be Borrower’s Own Funds etc."
Example Broker Scenario:
FTHB, 2 Months PITI, 34 months B/K seasoning, 611 FICO, Stated W2, 85% LTV, GOE, Illinois, SFR, Private VOR w/ 24 months canceled checks, ARM OK, 1yr prepay max.
Even if the Niche Matcher has keywords for every variable (such as FTHB or PITI), without a Boolean Rules Engine to calculate the interrelationship between the variables, the precise lender will not be identified. Instead, the Niche Matcher will send an email to EVERY AE with matching keywords.
An email may go to AE's that:
CAN do FTHB, but not Stated W2 FTHB
CAN do FTHB, but not with Private VOR
CAN do FTHB, but not with < 36 Months B/K
CAN do FTHB, but not in IL, with < 36 Mo B/K, with Private VOR, as Stated W2
Niche Matchers can send literally dozens of useless emails to AE's per scenario posted.
2) AE's MAY IGNORE: Because of all the useless emails, AE's quickly discover that the emails generated from Niche Matcher sites have a low likelihood of being a doable deal. AE's begin treating this email as low priority, or may soon stop looking at it altogether.
3) POST AND WAIT: Because Niche Matchers depend on AE's for responses to ultimately Qualify and Price your scenario, you will wait for it. And Wait. And Wait. Maybe forever.
4) OUTDATED INFO: Because Niche Matchers depend on AE's to maintain/update their profile's keywords, there is a high probability that the keywords are out of date, especially given the rapidity of today's lender guideline changes. Upon learning of his/her lender's guideline changes, it's highly unlikely that the AE's first course of action will be to rush out to all of the Niche Matcher sites to which he or she is a member, and update their keyword profile. This serves to exacerbate problems 1-3 above.
5) AE'S GONE: AEs are fewer in number, disgruntled, laid off, busy, and/or unaware of constant lender changes. Exacerbates 1-4 above.
6) NO RATE: Niche Matchers, even the ones that don't depend on AE responses, do not provide a rate because they can't. They don't have a Risk Grade Base Rate LTV/FICO Intersect Calculator and a Rules Engine for adjustments, ysp, or even prepay adjustments and/or restrictions. Does your borrower want no prepay? How much does that cost verses 1 year prepay in the same scenario? What if you need to sell the borrower on 1yr Prepay to get lower rate for dti to work?
Lately, some of these Niche Matcher sites are claiming the rates come directly "from the lender." What they mean to say is "eventually...from the AE."
7) MULTIPLE POST; SAME SCENARIO: Because Niche Matchers are so simple (cheap), brokers cannot try multiple iterations of the same scenario without posting and re-posting every single variation. Do you want to see a scenario with SIVA rates? Is there a SISA lender who can do it? What rate if borrower goes Full Doc vs stated? What is Max dti SIVA? Max dti Full Doc? What if 5/25 ARM instead of 30yr Fixed? IO? 40yr? 50yr? No Prepay vs 2 yr? How many times would you have to Post and Wait at the Niche Matcher's site to get all this info? How long would you wait?
BrokerLenderLink.com has solved all of these problems by building the mortgage industry's first and only Boolean Rules Engine for Sub Prime and Hard Money. Our powerful and sophisticated Mega Engine contains over 15mb(!) of Boolean Expression Rules (Wikipedia) that calculate the interrelationship between 480+ keyword variables. There is no business rule we cannot write. There is no bank we cannot add to our system (this means FHA, Prime, and ALT-A are coming soon!). Our data is maintained by a team of professionals 24/7/365 (yes, around the clock!). And in case you're wondering, the data DOES come straight from the lender, not from an AE when he/she gets around to it.
Right now, you can get instant highly accurate prequalifications and rates, with a powerful ysp tool that allows you to see the best rate at a selected ysp, or the best ysp at a given Rate Sold to Borrower. No Waiting.
You can save your scenario, and run multiple iterations of the same scenario, as many times as you want. See the same deal Stated, Full, Arm, Fixed, No Prepay, 1 yr prepay, 30yr, 40yr, 1ysp, 1.5ysp, etc. No Waiting.
First BrokerLenderLink.com provides you with an instant rate and qualifies your borrower, then we post your scenario for the AE to review. If the AE can get a better rate (an exception), the AE can step in and do so. By posting scenarios, we allow AE's to search and sort them, then price and qualify their own deals against their competition, and then they can begin working for you knowing full well which lender and what rate/ysp they have to beat. Meanwhile, you've already gotten the information you need to proceed. And you didn't have to wait for it.
So stop Waiting. Come join us. Be Powerful. Try the Most Powerful Pricing Engine available on the market.
www.brokerlenderlink.com
For More Info, Read BO Announcement Section Posts:
"A Broker's Guide to Online Pricing Engines"
"Rules Engine vs Aggregator: No Contest!!"
"Post my Scenario; Wait for AE Response? Heck No!!"
"Is the pricer an Aggregator? Why should I care?" |
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Loan Pro
429 Posts |
Posted - 12/30/2007 : 9:27:47 PM
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Ryan,
Website looks great- how many lenders do you have in your online system? |
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bllinc2002
358 Posts |
Posted - 12/31/2007 : 1:44:52 PM
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quote:
Originally posted by Loan Pro
Ryan,
Website looks great- how many lenders do you have in your online system?
Hi Loan Pro,
Currently, BrokerLenderLink.com has the rates and guidelines 72 Hard Money and Sub Prime Lenders in our Boolean Rules system. Of course, the list changes nearly daily, as lenders are added (and, unfortunately, go out of business).
We will have about 100-125 by the end of January, as we fully branch into Hard Money Commercial. With the addition of FHA, Alt A, and Prime, we'll be in the 400's.
Keep in mind, this isn't just a list of names and phone numbers, or a Niche Matcher Post and Wait. These are lender Rates and Guidelines represented by thousands of Boolean Rules, maintained 24-7-365.
Buy now, because as we add lenders, our usefulness increases, our costs increase, and so must our price. Your One Year subscription price now WILL be more expensive in the coming weeks.
Thanks for asking,
BrokerLenderLink.com |
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dkendall1979
9518 Posts |
Posted - 01/04/2008 : 12:01:19 AM
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Being as a vast majority of brokers are a branch of a larger lender and the lender is reliant upon those brokers for banking business, it may make sense to leave out A-Paper all together. Just a thought.
Other than that, I really like this product. |
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