A Wholesale Mortgage Lender Increases Revenue from the Secondary Market

As volume grew, the client recognized that legacy processes for pooling loans for sale into the secondary market were leaving substantial revenue on the table. A growing product mix combined with increasingly complex investor and in-house guidelines led to an unmanageable analytical hurdle for determining the best execution of the loan inventory. Moreover, the client was seeking the ability to include loan-specific price adjustments. The client's Risk Management Department turned to West Pole for a solution.

Easy User Interface Drives a Sophisticated Analytical Engine

The guiding star for the solution was a provable optimization of revenue given the loan inventory, in-house and investor constraints. West Pole recommended the deployment of a sophisticated analytical engine to process all allowable combinations of loans and identify the revenue-maximizing solution. Further, in order for business users to leverage the tool to easily adjust parameters and explore multiple scenarios—and to integrate with existing systems—a data-driven, web-based, dynamic user interface was developed.

Leaving No Money on the Table

West Pole developed and implemented a system that significantly improved best execution performance. The user interface is easy to use and flexible (providing for adjustments to myriad constraints) yet drives a powerful analytical engine. When compared side-by-side using the same constraints, the new best execution system significantly out-performed the legacy system realizing significant "hidden" revenue, and requiring dramatically less processing time.

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