iServe Residential Lending Implements PriceMyLoan

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San Diego-based retail mortgage lender selects PriceMyLoan to improve underwriting quality and reduce risk through more accurate identification of investor overlays.

iServe Residential Lending, a retail mortgage banker based in San Diego, California, recently implemented the PriceMyLoan (PML) automated underwriting and loan pricing system as a way to improve the quality of their underwriting – especially in regards to investor overlays. “We were looking for a way to scale our underwriting capabilities without increasing our risk,” said William Stock, director of capital markets at iServe. “PriceMyLoan was the only system that understood the importance of investor overlays and how it affects everything we do as a lender.”

PriceMyLoan is known for its accuracy and ability to determine whether a loan meets specific investor overlays and guidelines – in addition to generating a fully adjusted price. PriceMyLoan’s ability to read live credit report data is what enables it to be more accurate at determining loan eligibility, a key distinction that separates it from other types of systems known as product and pricing engines (PPE). For iServe, this means that their originators will be able to obtain a comprehensive decision on both borrower eligibility and pricing right at the point of sale, before a rate has been locked and before it has been submitted for underwriting.

“Other systems rely heavily on Fannie Mae or Freddie Mac automated underwriting for loan eligibility,” said Stock. “This can lead to broken locks and lower pull through if investor overlays are missed after the fact. PriceMyLoan is unique because it combines a Fannie, Freddie or FHA decision with a comprehensive analysis of investor overlays and guidelines. We’re more confident that loans will be approved by investors and we won’t have to waste time or resources re-underwriting loans.”

Catching investor overlays is not only a problem at loan origination, but iServe was concerned about underwriters potentially missing overlays and erroneously approving loans. “Investors change their overlays regularly,” said Stock. “If our underwriters don’t stay on top of these changes, we’re at risk of funding a loan that no investor will purchase. We either have to portfolio and service the loan, or we sell it off to the scratch and dent market at a potential loss of 10 to 15 cents on the dollar. That could be a hit of $50,000 on a single loan.”

PriceMyLoan builds and maintains all investor overlays on behalf of their clients. “We’re plugged in with investors to know when changes occur,” said Gigi Campbell, national sales director for PriceMyLoan. “We’ve seen one investor make twenty changes to their products in a single month. If you’re delivering to four or five different investors, that’s up to 100 changes you need to track. PriceMyLoan automates all of this and drives down the risk of poorly underwritten loans.”

By raising pull-through rates, PriceMyLoan positions iServe to garner better pricing with investors. And with a smaller but higher quality pipeline of loans, turn times are reduced and underwriters are less prone to mistakes. For a lender like iServe that is focused on expansion and growth, better pricing and lower turn times are exactly what attract branches and top producers. “Using PriceMyLoan, our originators now have greater confidence that they’ll be able to deliver exactly what the borrower wants in a shorter amount of time,” Stock noted. “PriceMyLoan an integral part of the many benefits we provide our sales team. It’s a major contributor to our recruiting success.”

About PriceMyLoan
PriceMyLoan is a pricing and automated underwriting engine designed for residential mortgage lenders. Originally developed in 2004, PriceMyLoan is delivered as a web browser-based software as a service (SaaS) application with the goal of enhancing productivity, reducing IT dependency and accelerating the return on investment (ROI) for its clients. PriceMyLoan utilizes the latest advances in web technology development using XML and MISMO standards, and combines it with a dedication to high-quality, high-touch customer service that is renowned throughout the mortgage technology industry. For more information, please visit

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Linn Cook
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