Dawar Alimi of Lender Price: How Quality APIs Are Helping Lenders Drive Modernization and Operational Efficiency 

Dawar Alimi is CEO and Co-Founder of Lender Price, Pasadena, Calif., a provider of cloud-native pricing technology to the lending space. He has more than two decades of mortgage industry expertise, during which he has built industry-leading technology and founded several companies. He is a well-respected thought leader in financial technology and has won numerous awards for his contributions to the mortgage industry. He can be reached at dalimi@lenderprice.com. Get more information about Lender Price by visiting www.lenderprice.com. 

MBA NEWSLINK: How can lenders modernize their business with the right APIs?

DAWAR ALIMI: Choosing quality and effective APIs make it easier and faster for lenders to scale, so they can grow without spending too much on infrastructure. Not to mention, it makes it much easier for companies to connect with partners outside of the company. This gives organizations access to valuable data that can be used to make quicker decisions. Quality APIs can provide an easy way for lenders to stay up-to-date with the latest technology trends and ensure their products remain competitive in a rapidly changing market.

To leverage the power of APIs, lenders should first identify what needs can be met by them. Once the need is identified, lenders should determine which existing or new APIs can help fill that need. 

NEWSLINK: What are some of the main benefits for lenders looking to utilize APIs over legacy systems?

ALIMI: APIs tend to offer several advantages over legacy systems. For one, they are much faster and more efficient, making them better suited for modern web development. For example, developers can get to data quickly using REST and GraphQL, both lightweight protocols, and access powerful tools that can be used for new projects without having to make new software from scratch. 

APIs are a great way to increase efficiency in any business. When lenders use vendor APIs, they can cut down on manual processes, automate more, and spend less time on tasks they repeatedly do. This lets them make better decisions and act more rapidly than ever before. Furthermore, APIs enable lenders to integrate various applications easily, effectively streamlining operations and maximizing resources. 

APIs can also be customized and scaled quickly, allowing lenders to adjust them as needed without incurring higher costs or effort. Because of this, APIs are an excellent choice for any business looking to drive down cost and drive productivity without sacrificing quality.

NEWSLINK: Can lenders still unlock value in their legacy systems through APIs?

ALIMI: Unlocking value in legacy systems through APIs can be an effective way for lenders to modernize existing applications and maximize their investment in them. Lenders can easily connect legacy systems with new applications and services by leveraging APIs, enabling them to integrate data and access powerful new features. Also, APIs make it easy for developers to make legacy systems last longer by building new solid services on top of existing code bases. Furthermore, APIs provide a secure way for lenders to share data without compromising security measures. Finally, APIs can act as a gateway between old systems and the latest technologies, allowing lenders to unlock real-time insights from their existing infrastructure that would otherwise remain inaccessible.

NEWSLINK: What are the main differences between legacy systems with APIs vs. modern systems with APIs

ALIMI: Legacy solutions currently used by banks and lenders tend to use outdated software frameworks and technologies. These solutions may have APIs that allow them to interface with other solutions, but the functionality of these APIs may be limited and they may not adhere to modern standards or best practices. Modern solutions, on the other hand, are often constructed with more recent technology and are intended to be more flexible and extensible. Their APIs are typically more robust and feature-rich, and they may be easier to combine with a vast array of other solutions.

Here are few significant distinctions between legacy solutions with APIs and modern solutions with APIs: Legacy solutions are frequently built with older technology, whereas modern solutions are constructed with more recent technologies.

• Modern solutions are often built to be more flexible and extensible, allowing them to adapt to changing needs and demands. Sometimes, legacy solutions are rigid and difficult to modify.
• Modern APIs are typically more robust and feature-rich than legacy APIs, which may have more limited functionality.
• Modern APIs are frequently designed to be easily integrated with a wide range of other systems, but legacy APIs may be more difficult to integrate due to compatibility issues or outdated standards.
• Modern solutions are often maintained and supported more actively than legacy solutions, which may receive less care and maintenance.

At the end of the day, an effective API is one that has been proven to work reliably, provides accurate data quickly, and offers scalability for future growth. The next time someone mentions they have an API, it would be wise to ask who has implemented it and what the feedback was. 

Additionally, lenders should assess the cost and effort associated with implementation and provide access to appropriate support when deploying an API, as it may require ongoing maintenance and troubleshooting. Lenders should also review their data policies and security measures before connecting any third-party systems to protect themselves from possible risks.

Ensuring these criteria are met can help provide them with long-term success. By doing this, they can ensure they are getting the most out of the pricing vendor’s APIs and the best value from their investment.

(Views expressed in this article do not necessarily reflect policy of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes your submissions. Inquiries can be sent to Mike Sorohan, editor, at msorohan@mba.org; or Michael Tucker, editorial manager, at mtucker@mba.org.)