Q&A with Lender Price’s Dawar Alimi: How Product Depth is Helping Lenders Drive Volume, Reduce Cost
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.
Get more information about Lender Price by visiting www.lenderprice.com.
MBA Newslink: Dawar, thank you for joining us today. Let’s dive right in. Why is it particularly important for mortgage lenders to have product depth this year?
Dawar Alimi: It’s a pleasure to be here. In today’s dynamic market, having a wide range of mortgage products is essential for lenders to remain competitive. With shifting economic conditions, changing borrower preferences, and evolving regulatory landscapes, offering diverse product options enables lenders to cater to a broader spectrum of customer needs.
Moreover, product depth not only attracts potential borrowers but also enhances retention by providing existing customers with tailored solutions as their circumstances evolve.
Newslink: That makes a lot of sense, especially in today’s market. What are some of the loan products you are seeing that are driving additional volume for lenders right now?
Alimi: Non-QM loans are certainly driving volume right now. They cater to borrowers who may not meet traditional lending criteria but have strong financial profiles or unique circumstances. These loans offer flexibility in income verification, credit history, and debt-to-income ratios, providing alternative financing solutions for self-employed individuals, investors and those with non-traditional income sources. With many borrowers starting businesses during the COVID-era, non-QM can be a great fit for this growing segment.
Newslink: Any other products gaining traction?
Alimi: DSCR loans have become increasingly popular. They make up a large number of non-QM loan volume right now. They are typically used where the property’s income is the primary source of repayment. They are often easier to qualify for and offer a streamlined approval process because there’s no personal income or job history requirement.
Newslink: What about home equity right now?
Alimi: Absolutely. Lenders are also seeing significant demand for home equity lines of credit (HELOCs) and home equity loans like HELOANs. With home values appreciating and homeowners seeking to tap into their equity for various purposes, including home renovations, debt consolidation, and large expenses, HELOCs and HELOANs offer flexible and accessible financing options. In today’s low-interest-rate environment, borrowers are drawn to these products for their competitive rates and potential tax benefits.
By offering HELOCs and HELOANs, lenders can capitalize on the growing demand for home equity financing while providing borrowers with the liquidity they need to achieve their financial goals.
Newslink: Shifting gears a bit, let’s talk automation. How can automation help lenders reduce costs and improve efficiency within the mortgage lending process?
Alimi: Automation plays a pivotal role in streamlining operations and driving cost savings for mortgage lenders. By automating routine tasks such as document processing, underwriting, and loan servicing, lenders can significantly reduce manual errors, shorten turnaround times and enhance overall operational efficiency.
Additionally, automation enables lenders to allocate resources more strategically, focusing human expertise on tasks that require nuanced decision-making and personalized customer interactions.
Ultimately, embracing automation not only lowers operational costs but also enhances the overall borrower experience.
Newslink: Looking ahead, how do you foresee technology reshaping the mortgage industry in the coming years?
Alimi: Technology will continue to revolutionize the mortgage industry, reshaping every aspect of the lending lifecycle. We can expect to see further advancements in artificial intelligence and machine learning, enabling lenders to harness data-driven insights for more accurate risk assessment, predictive analytics, and personalized lending solutions.
Moreover, emerging technologies such as blockchain have the potential to revolutionize the way mortgage transactions are conducted, enhancing transparency, security, and efficiency throughout the process. Additionally, the rise of digital mortgage platforms and mobile applications will empower borrowers with greater accessibility and convenience, driving demand for seamless, end-to-end digital experiences.
Overall, technology will be instrumental in driving innovation, improving operational efficiency and delivering superior customer experiences in the mortgage industry of the future.
(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.)
