California Lender Learns Hard Lessons in Deploying Product and Pricing Technology

COSTA MESA and RANCHO CUCAMONGA, Calif. - September 23, 2008 - MSM Lender, a residential mortgage lender based in Rancho Cucamonga, California, shared their view of the crowded product and pricing engine marketplace from a mid-tier lender perspective. The demand for automation technology in the mortgage origination space has spawned a myriad of vendors, but MSM warned that lenders need to be prepared when choosing the right one.

"We're not experts in technology, so it's difficult for us to understand the differences between vendor offerings," said Anthony Sanchez, president at MSM Lender. "We had to learn the hard way the ins and outs of product and pricing technology."

Learning the Hard Way
Product and pricing engines are used by lenders to attract originators by offering quick and convenient access to qualify loans and provide rates. "As a mid-tier mortgage banker, we need to be able to compete on technology against much larger competitors," said Sanchez. "They have well-established web-based programs for brokers to use, so we need to be able to offer the same level of sophistication."

While MSM understood the value of product and pricing technology, their lack of experience evaluating this type of software led them down a painful experience on a previous system before finally settling on PriceMyLoan, an automated underwriting and loan pricing system developed by Insight Lending Solutions in Costa Mesa, California.

The first challenge MSM Lender faced was with their previous system was deployment. "The setup process was really tedious," Sanchez explained. "It took about four months to get it properly setup, even with on-site assistance from a full deployment team." MSM soon realized that lacking the resources of a full-time IT department, they would struggle to keep systems up to speed.

Once the system was deployed, however, the disappointment didn't end. Integration with their back-end system was incomplete and required manual re-keying of data. Pricing results came back inaccurate and required a manual pricing once a file had been submitted. But the final straw for Sanchez, however, was the poor customer service they received. "Anything can be designed well, but you need support," Sanchez said. "Our previous vendor simply didn't have the resources to deploy, and their overall customer service was sub-standard."

A Breath of Fresh Air
Ultimately, MSM chose to part ways with their previous vendor and selected PriceMyLoan. Sanchez noticed a difference immediately. "PriceMyLoan kept deployment simple and straightforward," said Sanchez. "It was pretty much plug-and-play. We were literally up and running within two hours."

More importantly, PML generated extremely accurate loan eligibility and pricing results. "It was a breath of fresh air," noted Sanchez. "Through our previous experience, we learned that everything pivots around credit data. PML does a full-on credit analysis, and none of the other companies that we looked at had near those capabilities."

Since implementing PML in June 2008, MSM Lender has been able to improve their response times and attract new business. "Brokers gravitate to lenders that are efficient and effective," Sanchez said. "Closing a loan in 30 days is no longer competitive. We can turn a file in two to three days and a lot that is due to our use of PML."

In hindsight, Sanchez now sees what lenders need to look for when evaluating product and pricing technology. But he emphasized that certain intangibles, such as customer service, are what really inspire confidence. "PML has the most outstanding support we've ever received from any company, bar none," said Sanchez. "It's reassuring to know that you're working with people that sincerely have an interest in helping you succeed."

About PriceMyLoan
PriceMyLoan is a proprietary product of Insight Lending Solutions (ILS). Founded in 2002, ILS provides web-based application service for the mortgage lending industry and software as a service (SaaS) to its clients to enhance productivity, reduce IT dependency, and accelerate time-to-value for mortgage companies. Combining advanced technology development using XML and MISMO standards with high-quality service, ILS provides its clients with solutions that result in reduced loan cycle times, improved pull through rates, and a lowered total cost of software ownership. For more information, please visit www.pricemyloan.com.

About MSM Lender
Mortgage Solutions Management, Inc. (MSM) was founded in Los Angeles, California to provide competitive wholesale lending products with superior service. MSM offers its wholesale residential financing in numerous markets nationwide. MSM’s Executive Team has over 45 years of experience in the mortgage lending industry which has allowed MSM to develop and cultivate numerous relationships and strategic partnerships in order to provide the best loan products and pricing available in the market. The Executive Team’s experience has allowed MSM to become a prominent player in the wholesale market in California and other states with suitable markets. For more information, please visit www.msmlender.com.

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Contact: Linn Cook
PriceMyLoan
(714) 957-6335
lncook@pricemyloan.com
www.pricemyloan.com