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What Every Compliance Person Needs to Know About Their Pricing Engine!

By September 20, 2013January 18th, 2016Assessments, Best Practices, Pricing, Pricing Policy

The pricing engine is now mainstream in virtually every mortgage company.  It runs the pricing, pricing policies and pricing procedures; yet many compliance personnel are not familiar with how it works and most importantly how it can help make their job a lot easier!  This is part One of a Two part series.  The next article will demonstrate the workflow from LO to closing and how you can demonstrate that compliance management system to an examiner.  Trust me on this, it will blow them away!

Most fair lending monitoring is done AFTER the loan closes.  While that may have worked in the past, it will not work with today’s regulators.  The CFPB is highly sophisticated in their approach to Fair Lending Data and their mission is to protect the consumer.  How can you protect the consumer if you look at the data after the loan closes?  Their pricing information should be monitored from lock in to closing and your pricing engine makes that functionality easy!

Pricing Functionalities and What They can do For Compliance:

  1. Present Price Options to Originators based on your company criteria
  2. Force Compliance Checklist questions to be answered by the loan originator at the time of lock-in.  This methodology allows you to monitor the loan before it closes and notates the file so that no harm is done to the consumer.
  3. Present Best Rate & Best Fit for the consumer
  4. Monitor for Pricing Disparity, Steering and Redlining
  5. Monitor Price Exceptions
  6. Manage Investor Overlays
  7. Show you why a client did not qualify for a particular loan vs. another.
  8. Configure Loan Originator Compensation
  9. Configure TPO Compensation and Pricing Oversight
  10. Handle Rate Re-Locks Automatically and with a Price Trace
  11. Price Trace any Loan for quick information to an examiner.
  12. Deliver exact pricing at that moment from the investor and validate the pricing before the lock is accepted.
  13. Historical pricing lets you go back in time to the day of lock in, and see what was available to that client on that day.
  14. Monitor your Retail and TPO Fair Lending Real Time!
  15. Notate File Anomalies
  16. Double-Check at “Clear to Close”.


I look forward to showing you the workflow in the next article!  Stay Tuned!


Tammy Butler, Master CMB

Author Tammy Butler, Master CMB

More posts by Tammy Butler, Master CMB

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