Black Knight: Moving Loan Pricing from Reactive to Proactive with Real-Time Data


In today’s mortgage market, it’s important to know your competitive position in any given lending scenario. Interest rates are rising. Lenders are seeing a decrease in refinance volume and are focusing more on purchases. Whether you’re looking to enter new geographies or offer different lending programs, visibility into competing products and pricing strategies, as well as price trends within a specific market, is imperative.

Timely data

When choosing a price comparison tool, it is important to assess the source of the data. Many solutions use survey data – an honor system approach – and risk being inaccurate. Data can be hours or even days old by the time you view it. To price with confidence, lenders need a solution that provides verified data pulled directly from a product and a real-time pricing engine to ensure complete accuracy. Additionally, the product and pricing engine must have a significant market share so you can confidently gain insight into many different lending programs and geographic locations.

real-time information

To be competitive, lenders must be able to run reports for individual pricing scenarios at any time of the day. This is only possible with an ad hoc real-time search tool. A real-time pricing analysis service makes competitor pricing from a product and pricing engine visible to investors. Through a transparent and contributory service, investors make their institution’s name visible for their product and pricing programs. With such a price overview, participating investors can compare their prices across various lending programs or geographic regions they may seek to enter.

Granular search

Competitor pricing data can also be used as a “fitness check” to validate existing strategies as well as identify new opportunities. After all, in today’s competitive and volatile marketplace, lenders can’t just react to what’s happening in the market. Lenders must create opportunity by proactively engaging in the current market environment to not only survive, but to thrive. To accurately understand current market trends, you need tools with increased pricing granularity and specificity.

Being able to set up pricing scenarios and receive email alerts when scheduled reports are available is crucial to facilitating day-to-day decision making. This is only made possible with significant granularity in price discovery where lenders can search by loan characteristics such as loan terms, LTV, FICO and specific data down to local market conditions. Additionally, the way the data is displayed will have a direct impact on your team’s efficiency. Find a solution that displays detailed data in a concise, easy-to-understand visual format to instantly see how your institution compares to other industry-leading investors.

Factors beyond pricing

Keep an eye on the competition while evaluating the effectiveness of current strategies. After all, pricing is just one element. A benchmark price comparison tool will help you determine whether program pricing in specific markets helps or hurts competitiveness. If pricing isn’t the issue, you’ll be able to quickly analyze other factors, such as execution inefficiencies or customer experience issues.

Compete smarter, pivot faster

Knowing how peer institutions are pricing in the markets at any time is invaluable in identifying new opportunities, assessing whether or not to enter a geographic area, validating current strategies and more. With data to understand any market environment and product strategy, the right benchmark price comparison tool allows lenders to compete wisely and grow with confidence.

Click on here for more information on how Investor Pricing InsightSM by Optimal Blue can help you easily compare pricing and eligibility strategies to those of peer organizations.


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