Over 70% of today’s mortgage origination volume comes from Independent Mortgage Bankers using warehouse lines of credit as their primary source of funding and there are few relationships more important than between a mortgage banker and their warehouse partner. As former mortgage bankers, we knew bringing AI decisioning and automation to warehouse line management would transform processes, provide valuable business analytics, and boost profits. We set out to build the industry’s first Warehouse Management System (WMS), designed from the originator’s point of view, as a tool to strengthen the relationship with our warehouse partners. The end result is a robust technology platform that has significant impact to lowering origination costs, provides new business insights to financial management and a full suite of automation capability that gives a competitive advantage to both mortgage lenders and their warehouse lending partners. We believe warehouse funding automation will be integral for most originators in the very near future.
We share Loan Vision’s mission and vision to:
- Help transform accounting departments across the mortgage industry
- Aid in reaching maximum efficiency via tools to give them better insight into profitability
- Provide instant, consistent access to the financial information needed to make quick, strategic decisions
Here are some ways warehouse automation helps the Finance department and boosts originators’ profitability:
- Warehouse relationships are the lifeblood of an originator’s business and are also one of the biggest expenses. Lenders using technology to optimize funding decisions factoring the complex web of terms, rates, fees, capacity and dwell time and to select the best warehouse line for each loan have a significant advantage. When this is done in real-time while loans are in pipeline, the result is strategic utilization across all warehouse lines and a lower net cost of origination.
- Automation provides seamless bulk funding to all warehouse lenders with a single action. Secure, two-way communication enables one-click funding requests and automates the processing of wire confirmations, trial balance reports and purchase advice reconciliation. Funders can issue funding requests for one loan or hundreds in moments. The result is lightning-fast processing that boosts capacity for the entire origination operations team. And, a WMS will virtually eliminate human error from manual calculations and data input.
- Robust, real-time business insights are accessible on the dashboard to help you strategically manage your business. Experienced originators know it’s not just about interest rate. A warehouse management system provides for effective cash management, insights to aging loans and upcoming curtailments and the ability to understand true ROE across the entire loan portfolio. To truly optimize, lenders must have real-time information on pipeline position and are quickly embracing tools that measure performance and competitiveness.
- Warehouse management technology can be a tool to strengthen relationships with warehouse lenders. Our clients love to deliver loans to their connected warehouse partners who embrace automation because of the ease of delivery, accuracy and the satisfaction of knowing they’ve utilized the best warehouse option for their business. Bulk funding requests and required documentation is delivered accurately in moments, boosting volume and enhancing turn times for both the originator and the warehouse lender.
Innovation has been and continues to be essential for mortgage originators’ growth and profitability. Today’s originators need a holistic Warehouse Management System that can transform processes, increase capacity, deliver business insights and provide a competitive advantage. Contact us to learn more.