Mortgage Builders latest LoanXEngine upgrade includes new hedging functionality

SOUTHFIELD, MI (December 11, 2013) —  Mortgage Builder Software, the Southfield, Michigan-based provider of award-winning loan origination and loan servicing software systems (LOS and LSS), announced upgrades to its LoanXEngine product eligibility and pricing technology that will 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.

LoanXEngine is the only solution to offer full eligibility, best execution pricing, CRM, lead management, rate watch, rate sheet generation and web point-of-sale in one web-based system, unifying functionality only previously available in multiple systems.  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 the industry’s first 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 Mortgage Builder

Southfield, Michigan-based Mortgage Builder Software, Inc. has been providing industry-leading loan origination software (LOS) to mortgage banks, community banks, credit unions and other financial institutions since 1998.  Mortgage Builder was the first LOS to provide its full capabilities in Application Service Provider (ASP) form, as Software as a Service (SaaS), in the traditional licensed, server-based configuration and now in a fully browser based environment, providing complete flexibility to suit all clients’ business models.  Architect by Mortgage BuilderTM is an end-to-end, “everything’s integrated” lending solution for retail, wholesale and correspondent mortgage production channels, automating origination, closing, post-closing and delivery, as well as tracking and reporting functions.  Essential enhancements like pricing and product eligibility (PPE), electronic document management (EDM) and electronic loan delivery functionality are built-in and available on demand, while compliant loan documents are provided at no additional cost. Colonnade by Mortgage Builder offers a complete loan servicing system (LSS) that is scalable and fully featured, ideal for mid-sized and larger loan servicers.  The company has been named byMortgage Technology Magazine as one of the industry’s Top 50 Service Providers for the seventh consecutive year, and was the winner of the magazine’s prestigious Help Desk Award for outstanding customer service and the industry’s best technical support.

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