Innovation is the lifeblood of any industry, and the lending sector is no exception. As we step into 2024, the landscape for lenders is evolving rapidly, driven by technological advancements, changing customer expectations, and regulatory developments. To delve deeper into how lenders can navigate these changes and drive innovation in the industry, we sat down with Dawar Alimi, CEO and founder of Lender Price, a leading provider of mortgage pricing engine. In this interview, Dawar shares his insights on the key trends shaping the lending industry in 2024 and offers valuable advice for lenders looking to stay ahead of the curve.
Mortgage Tech Innovation – How Lender Price is driving innovation for lenders in 2024 with Dawar Alimi of Lender Price
Listeners, pricing is a big topic and I’m excited to have joining me Dawar Alimi, he is the Co-Founder and CEO of Lender Price. Really good. We could go on and I’ll tell you more. In fact, we’re going to put his bio in the show notes, I can read that, or you can go read it. And we get into the content. I’m really excited to have you here. Dawar. Thank you so much for joining us.
David, thank you for having me again on your podcasts. I’ve always enjoyed being on your podcast. And I think that the listeners out there also enjoy your podcast very well as well. Happy to be here.
It’s a joy and an honor, especially knowing that you just won a prestigious award with Ice Mortgage Technology. Can you tell us a little bit about this and listeners, this is significant. This is not just one of those, pay a little money and get an award kind of thing. This is not handed out by ICE mortgage service technologies very often. So, tell us about it.
Thanks. Yeah, so we’re fortunate enough and honored to win the 2024 Lenders Choice Award. It’s given to an innovative service provider with ICE Mortgage Technology. So, innovation is key there. I’m extremely proud of this award. I’m extremely proud of our team. It’s a testament of all the hard work and effort that we put into our application throughout the years. And also, to be part of past esteem winners, Felicity Xactus, Value link, First American, there’s a ton of them out there and to be part of this group. It’s truly an honor. And the award is really based off lender feedback. So, I’d also like to thank our lenders who took the time to provide their feedback. And I’d like to mention that we’re the first PPE to win.
First PPE to ever receive this award. And that’s pretty significant especially with the previous affiliation they had with a competitor of yours, and the fact that you want this, and they never gave it to that other, was a part of what they were doing for a while. So, it’s really exciting. I think that as the CEO of Lender Price, I really want to get some insights into what you believe sets your company apart from other players in the market, and what is the unique value you bring to your clients. I know you got a great product, a great service. But there’s, it’s all of that and got to be more.
Yeah, So, we’ve been working with eyes for close to nine years now. We were an early adopter of bat when they had the SDK, and then their API’s and then now they’ve got the Depth Kinect as well as their new EPC framework. And we’ve contributed in terms of providing our feedback regarding those API’s. And as ice is well known, and a large partner program, we’ve been part of this partner program for a while. And we also have the gold status within this partner network. And in order to get that you’d have to essentially go through various milestones, and essentially hit these various targets, and they measure your success. And together, what we’ve noticed is that number one, some of the largest financial institutions in the nation has integrated with our solution in conjunction with ice. It’s all of this put together, and it gives you the framework as to how to use their solution, how to use their API’s, and how to provide a best-in-class integration with us.
So, when you’re designing your technology, you’re obviously designing it encompasses the largest install base of any in that space that they have anyone out there. When you’re looking at interfacing with someone like this, what are some of the keys to make this function? There’s some interfaces that are clunky and don’t seem to work? So well, quite honestly. Yours functions really seamlessly.
Yeah, number one, we’ve got a modern framework, right? So that really helps out.
So, you guys have a modern framework that fits in nicely. So that really helps. Okay, good.
That’s yeah, exactly. So, then we at times when you’re dealing with API’s, and let’s say, if the API doesn’t have the functionality that you need, then you have to cover for that. So having a modern framework allows you to take advantage of the various solutioning that you can do with that framework.
So, what aspects about what you were designing this? And let’s go back to some of the original thoughts you had about how you’re going to differentiate yourself in the design and delivery of what you do. Could you go back in how did you view the world? What did you saw out there and how did you do want to differentiate yourself?
Number one, when we looked at the current provider out there, and it was the largest provider there still out there, we noticed that there’s various things that you can make the back office of the secondary capital markets functionality much more efficient. So, when we looked at things we said, okay, whatever it takes a day a week, can we lower than two minutes? seconds? Can we completely automate that process in its entirety? How are locks post lock events handled? Is there ways that any manual things that lenders are doing that we can automate? And what we came up with is we said, okay, number one, you’ve got lenders that operate differently. And we also noticed that various lenders like to deal with locks and post lock events a little bit differently, and especially as it relates to concession management, branch concessions, etc. So, we said, we have to make something that’s flexible, and something that’s got a workflow that matches how they operate, and then tailor in and sprinkle in a lot of the automation part and eliminate some of the manual processes that they’re currently enduring today. So
It’s studying the way they’re going about their business. And just as making it as frictionless, seamless, easy, compared to what the other system requires to go through a lot more gyrations to get to the solution that they’re looking for.
Exactly. And a good example of that is rules management, right? Because pricing is all based on rules. So rules are usually done with if then statements. And that’s when we brought NLP into the mix, natural language processing. This is before people even knew what natural language processing was, now they know it with Chet GPT. So what he said is, wouldn’t it be nice if you could just write out a rule in natural language and have the solution, the application create the rule for you. And it took us a while to get that right. And that’s essentially how our clients manage rules. And the back end is if they can type it, the solution can actually create the rule for
What you’re really talking about here is that innovative new approach and using the latest innovation to be able to do this. And I remember when we first talked, he told me about how you’re using these NLP, the natural language programming aspects that has just really come in. And you’re one of the first out there which really goes to the the key is innovation in the mortgage stage, what are some of the things that you guys are working on, and are excited to announce this year to our audience, that you at least that what you can be talking about? Yeah.
So number one, we did announce our base price solution. And that’s really to create your base price, and then you add your LLPs. On top of that it’s integrated with Icon, Refinitiv and Bloomberg. But one of the other components that also what we work with in it’s going to be launched very soon towards the end of this year is chases correspondent portal. And this is the same portal that everyone uses today to sell loans to chase. And we have a relationship with Chase. Chase is our solution for the retail channel. And they came to us and said, look, we’d like to see how you can help us build out this correspondent portal and modernize it and automate through your various features. And essentially, that is part of this whole 2020 for lenders Choice Award is that we’re innovating, creating a better way for Chase, to enhance our correspondent lending with her lenders. And this means that whether you’ve got various pricing engines, hedge advisories, they will be working with this new portal that we’re working in conjunction with our partner ice mortgage technology.
That’s really good. I gotta give a shout out to chase. We had them on the podcast with some of the innovative programs that are coming out that they have available. And so lenders listen to this podcast, but also go check the links out afterwards, because we’ll put a link to what Chase is doing. That partnership is significant. And I know Chase is very careful on who they select. So kudos to you for that. Can you walk us through any recent success stories where letter prices technology has made a significant impact for our client?
Yeah, in terms of increasing various efficiencies on the back end, mirroring our base price solution with our pricing engine, enabling it so that there’s a particular wholesale lender that we recently just onboarded that was essentially creating the rate sheets, looking at market conditions, creating their base price manually, and then it would take hours. And we’ve reduced that down to three clicks. So, they actually go into the system every day, make three clicks, the system will create their base price, and bring in all of the TVA pricing from Icon, Refinitiv or Bloomberg and essentially create the base price, add the LL pas. Generate the rate sheets, distribute the rate sheets, and they’re ready to go. And whether if it’s like mid-market rate changes. It’s the same process.
Yeah, what’s so significant about that is we’re in an industry right now. We’re at a time in the market where we have got to cut costs and something like that sounds like you’re taking out a lot of human element out of it. With that, which is allowing people to reduce staff a bit, that’s outstanding. Could you share a little bit more about your back-end technology and how it helps your platform to stand out?
Absolutely. So, our back-end technology is really the secret sauce. Number one, we don’t use a relational database, we use Mongo, and you got a combination of non-relational. So, it’s great for advanced data analytics, as well as handling sophisticated and complicated data needs. We have a microservices architecture. And a good example of this is this, if you’ve got an old legacy application, it’s a monolithic app. And what I mean by that is, even if you were to host that in Amazon Web Services, you’re essentially taking your application, installing it on a server. And then if you need to scale what are you going to do, you’re going to add more resources, right, you’re going to add more memory, storage, etc. We’ve got a microservices architecture. So, our application is divided up into very small little programs called micro services. These micro services are then installed on 100 different servers. So not only can we serve vertically, where we can add more resources vertically, we can also distribute our application into 100, or even 1000 different server clusters on Amazon, which means that our application can never go down, a micro service can go down, but the application can never go down. So, it’s so good. That resiliency, the scaling. And the ability to do that is really important. And we are the first cloud native solution out there. Because our application was born in the cloud. When we launched this in 2016 1516. We didn’t have servers because we couldn’t afford servers. So, what do we do? We actually got a startup account with Amazon; they actually give it to you for free. And you can build your application without needing a server. So, our application was hosted and was actually born and hosted on AWS from the start.
That’s amazing. Yeah, I love that the innovativeness and how you look to approach the business from reducing costs. One of the things I really admire, what you have done, is you tried to get ahead and have successfully gotten ahead on the innovation play. So, you’re a great person to ask this question, what do you envision the future mortgage lending to look like? And how does lender price positioned to lead the way in this fast-evolving landscape?
Yeah, I think what you’re gonna see, and you’re already seeing it today and industry is that you’re seeing more lenders and vendors dabble with AI, and machine learning, figuring out ways that they can actually improve efficiency reduce costs, what’s always surprising to me is the cost of loans can increasing. Yeah, I think that one of the most important things that we can have in our space is competition, because more competition helps reduce that cost, right. But I do see, we’ve started with AI with NLP, and we’re continuing with that. And I think that you’re going to see ways of seeing AI and machine learning be applied to underwriting. I don’t think that it’s going to replace people, I think it’s just going to make things better, not only from an efficiency standpoint, but from a regulatory standpoint, because if you can algorithms, look at things like patterns in terms of like good loans versus bad loans, you’ll be able to catch things before any issues occur. Let’s say before you’re going to find a loan, maybe you can have a system that can alert you with things that you should know about a particular file, because it’s looking at patterns. So, we can help an underwriter evaluate that. And we look at underwriting guidelines, we actually look at eligibility rules. So, it’s important for us to also look at that and see how we can apply AI when it comes to those things.
All right, interesting. Yeah, AI, no question is showing up everywhere, whether it’s applicable or not, and they just put AI in the name just to draw attention to themselves, I think. But what is a realistic expectation for AI? You said something that I locking onto, and that may not eliminate jobs, but it may allow someone to do a lot more in that or what’s your perspective?
Like I said, it’s going to help lenders from a regulatory standpoint. Love that. Yeah, the area that I think is very interesting is you got to be very careful in terms of like how you use chat, GPTs chat GPTs APIs. A good example of a company that’s using AI just recently is in Insellerate. That’s our good friend, Josh. Friend, I think that if you’re a company out there that’s looking for a product that came out with a product and then look at other solutions out there that are using AI in a much more effective way that kind of, you know, with their CRM, they’re helping clients figure out ways to actually improve their sales process, but look at ways that people are using it. Vendors are using it and see if it works. And then if it does work Then that’s something that you should really consider. Because, as a lender, you want to be ahead of the curve, right? We’re coming out of a cycle. And this is the time that you should look at your technology stack, figure out what works, what doesn’t work, and determine, you know, is this something that you need, and maybe you don’t need it. The one thing that I can tell you is that in this industry, you look at solutions. And then some people like to chase the shiny object. I think that PRMG does a good job and saying, Look, you know, we’re never the first adopters. But we’re never a company that doesn’t adopt. We’re a company that kind of evaluates things and just waits and sees. And you definitely have to embrace that technology in order to compete. Always keep your options open, whether it’s PPE, LLS CRM, look and see who’s innovating and see if that innovation helps you improve efficiency and helps ROI. That’s excellent.
What are you seeing as a common denominator amongst lenders that are doing better than others? Right now, from your perspective?
I’m going to give you a non-technical answer. And the non-technical answer is going to be this is I think, the best lenders out there understand the value of relationships, know how to build relationships, because, look, I’ve got a graduate degree in engineering. And as much as I like technology, ultimately, you’re going to grow as a company by building strong relationships. And there’s something that we say here at lender price, which is true service Trumps technology, you can have great technology. But if you can’t back it up with good service, then your application is not going to shine. So it really comes down to relationships, good service, and making sure that you listen to your customers.
And you’re obviously doing a good job and that your customers are raving fans. So you’re nailing it both on the technology side and on the customer service. People that want to get to know you and reach out to you to our houses the best way to do that. Phone Numbers email.
Yeah, just visit us at lenderprice.com I’m on LinkedIn, you could go ahead and chat me through LinkedIn. And yeah, those are probably the best ways or direct lender price.com That’s my email address. Reach out. Good.
Thank you so much for joining us today. Appreciate it. Congratulations on your award. That is a big Andy where we started that is a major a feat that landed that one especially being the first pricing engine to get it ever. That’s good.
Thank you so much. It’s a testament of our employees’ hard work are all of our folks that our company starts with a good vision and that’s what you as the founder have co-founder of the accomplished so where to go. Congratulations, your success and wish you continued success in this crazy market. We’re in Thank you sir.
Thank you, sir.
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CEO and Co-Founder of Lender Price, a leading SaaS-based mortgage pricing and underwriting engine. Dawar has been in the mortgage industry for over two decades now, earning his place as a thought-leader in financial technology and innovation. Prior to founding Lender Price, he owned a loan origination software company, a wholesale mortgage company, and an escrow company. He’s also held several executive and C-level positions. Dawar has an MS in CS from Boston University, which he put to good use when he helped create Lender Price’s cutting-edge pricing, underwriting, and analytics solutions.