Lender Price’s Dawar Alimi: Unleashing the Power of an Advanced Pricing Engine

Dawar Alimi is CEO and Co-Founder of Lender Price, Pasadena, Calif., a provider of cloud-native pricing technology to the mortgage industry. 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.

Alimi can be reached at dalimi@lenderprice.com. Get more information about Lender Price by visiting www.lenderprice.com.

MBA NEWSLINK: What are some ways a modern and advanced pricing engine can help financial institutions?

DAWAR ALIMI: The implementation of a sophisticated pricing engine can lead to significant benefits for lenders. By leveraging advanced algorithms and analytical techniques, lenders can optimize their pricing strategies, increase revenue and improve customer satisfaction. The power of such an engine lies in its ability to analyze vast amounts of data, identify patterns and trends and generate pricing recommendations that are tailored to the specific needs of the business.

As the mortgage industry evolves, lenders must have the right resources to manage their operations. Aside from having the right technology, providing the best possible customer experience and delivering fully transparent pricing are vital to driving success. This is why many lenders recognize the importance of having tools to monitor the market, improve efficiency and increase profitability continuously. Having a modern and advanced pricing engine is critical to this equation.

Unlike legacy solutions that use outdated software frameworks and technologies, a modern pricing engine is built on the latest technology stack which offers more stability and scalability, and utilizes advanced algorithms to help banks, credit unions, lenders and brokers offer loan products that precisely meet the evolving needs of their clients. The right pricing platform helps financial institutions foster innovation and can scale up or down according to business needs, helping them stay competitive and ahead of the curve.

NEWSLINK: How about cost reduction? Return on investment?

ALIMI: Modern and advanced pricing engines significantly reduce operational costs by automating complex processes. They streamline workflow, minimize manual errors and enable lenders to process more loans without proportionally increasing their workforce. Automating routine tasks ensures efficiency, saves time and money and solves hiring constraints in the long run.

In addition, a modern pricing engine provides lenders with accurate pricing and real-time data, enabling them to make informed decisions much faster. This speed and precision in decision-making, coupled with tailored loan products, can help provide attractive pricing and drive more business with borrowers. With the increase in volume and overall reduction in operational costs, this can all directly contribute to higher ROI and increased profitability for lending institutions.

NEWSLINK: Can advanced pricing engines manage all types of loan products?

ALIMI: Absolutely. Modern pricing engines are designed to handle various loan products, from traditional mortgages to complex financial instruments. Their flexibility ensures that banks and lenders can manage a diverse portfolio efficiently and get it out to the market quickly. Whether it’s a fixed-rate mortgage, an adjustable-rate mortgage, government loans or even specialized products like non-QM or DSCR, the right pricing engine can handle them all.

NEWSLINK: How about serving the needs of capital markets and secondary marketing teams?

ALIMI: Modern pricing engines offer near-endless configurability, custom workflows, real-time data on market conditions and automation to help these teams stay laser-focused on margin management. This combination is beneficial for secondary marketing teams and capital markets professionals because it helps them make intelligent choices about how to manage risks best, optimize portfolios, and make the most of things like granular margin management, post-lock API functionality, and the ability to change base prices and reprice in minutes automatically.

The right pricing engine helps lenders improve their pricing and eligibility rules and maintain a scalable operation. Adding loan programs, LLPAs, eligibility rules, margins, and lock workflows should be streamlined, straightforward, and accomplished in a fraction of the time. One of the most critical factors a lender should consider when choosing a PPE is the availability to price thousands of products in seconds.

NEWSLINK: Lastly, you mentioned automation earlier. How does automation of manual tasks contribute to driving efficiency?

ALIMI: Automation is at the core of modern and advanced pricing engines. By automating manual tasks, such as data entry, verification processes and compliance checks, these engines free up valuable time for employees. This time can be redirected toward more strategic tasks, such as developing innovative loan products, enhancing customer service, or fostering partnerships. Automation ensures that the workforce focuses on high-value activities, maximizing efficiency.

The right pricing technology can help lenders of all sizes drive innovation, reduce cost and ultimately reshape the way financial institutions operate.

(Views expressed in this article do not necessarily reflect policies 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 Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)