How Rocket is aiming to boost broker confidence

Fawaz noted the program was developed based on broker feedback, addressing various areas for correspondent lenders, including:  

• The elimination, misquoting or loan adjustment oversights by applying systematic profit levels.
  
   
• Prevention of time loss. To that end, the target profit is baked into pricing adjustments so there is no need to monitor points and discounts to ensure margins are maintained, he explained.
  
   
• The blocking of unnecessary QM failures by including adjustments at pricing. Fawaz said users would no longer experience QM failures for fee adjustments to achieve profit as a result of the product offering.
  
   
• Elimination on the cost of paying an outside vendor to help keep loan-level profit in line.

Partner feedback prompted product launch

“It’s truly based on partner feedback,” he said. “One of the things we pride ourselves in is listening to partners, taking the feedback and figuring out how to deliver. For us, this was the best thing we could do for the correspondent lenders – give them this dynamic tool. It’s literally a loan level adjustment built right within our portal, within our pricing engine. I haven’t heard of anyone else in the industry that has such a tool.”

He noted the product eliminates the need for broker partners to use a third party pricing engine. “We brought that into our pricing portal for our partners,” he said. “I was having a conversation with a broker partner two days ago and he literally said ‘Fawaz, I love this.’ You literally can set it and forget it.” 

He posited the new product as an extension of earlier efforts: “This is an addition to this incredible platform that really sets brokers apart and correspondent lenders apart in this industry, and really sets us apart. This is exclusive,” he added. “No-one else has it.”

In launching the platform last year, the lender cited figures indicating the correspondent channel closed an estimated $327 billion for the first half of this year, and nearly 74% of correspondent loans that went to Fannie Mae, Freddie Mac and Ginnie Mae in the second quarter were purchase loans.