Lender Logic

Computer keyboard with mortgage word on enter buttonMortgage agents generally pay a split of their earnings to a brokerage. One of the things they get in return is technology (e.g., a deal entry system,  CRM system, rate sheet creator, etc.).

Most brokerage technology we’ve seen is run of the mill stuff, nothing special. So when a piece of software comes along that can genuinely help clients or generate more revenue, it’s noteworthy. We had a look at one such tool from Mortgage Alliance this week, called “Lender Logic.”

Lender Logic is a decision support engine. It helps brokers find mortgages that match a client’s requirements.

It works by comparing well over 100 criteria in the client’s application to the products and guidelines of 15+ top lenders (lenders that represent 90% of Mortgage Alliance’s volume).

Lender Logic has “every single product that every lender on our system has,” says MortgageBOSS product manager Christa Mitchell. The software filters those products and then spits out a list of lenders (and insurers) that will consider the deal. The broker can then check rates and terms and route the application to the lender that fits best.

Lender Logic

(Click to enlarge)

Lender Logic, which is free for Mortgage Alliance brokers, has been around for a while. Prior to a few weeks ago, however, it was a standalone system. Brokers had to key in client data twice: Once to have it analyzed by the system and once to send it to lenders. “Nobody used it before one-time entry began,” admits Mitchell.

In this new version, brokers fill in client application data once. They can then run it through Lender Logic, pick a product and instantly submit the deal via a link to D+H Expert.

Lender Logic competes with standalone platforms like Mortgage Mentor and LenderVault. Unlike those products, however, it:

  • Doesn’t force brokers to key in client parameters twice
  • Uses the client’s actual credit bureau data to determine which lenders “fit”
  • Lets brokers instantly send an application to their lender of choice.


Lender Logic is both a time saver (for the broker) and potentially a money saver for the client. The reason: It helps brokers find a client more options. More product choice means potentially lower rates, more flexible terms, and (sometimes) a higher probability of approval.

It also puts less experienced brokers on a more level playing field. Newcomers to the business often stick to the small stable of lenders used by their head broker. Product comparison tools make it easier to find alternate options for a file.

Lender Logic also helps ensure a deal meets the lender’s criteria. That avoids wasted submissions and supports high funding ratios, which are mandatory for maximizing compensation and keeping lenders happy.

Wish List

While test driving the software, a few shortcomings stood out:

  • No quick product comparison: There’s no way to easily compare rates and features of the mortgages that appear in the search results. That means you have to manually review each product to determine the best value.
  • Limited lender breadth:  There are dozens of lenders out there, but Lender Logic has just 15—albeit the biggest 15. Some brokers assert that all you need are 5-6 good lenders. But the more providers a deal can be exposed to, the greater the odds that the client gets the best possible product.

Mortgage-AllianceMortgage Alliance says it’s adding more lenders as we speak, and will continue to do so. And there are plans to make product comparisons easier as well.

In terms of maintenance, Mortgage Alliance’s central underwriting hub manages the data and updates it regularly. It also has in-house developers to maintain the system and implement features and fixes more quickly.

Many broker technology initiatives are a reinvention of the wheel and not worth writing about. This product is not one of them. It’s a differentiator for Mortgage Alliance and it has the ability to make good brokers better.

Rob McLister, CMT

  1. I’m curious whether someone decides to put that kind of tool in the hands of end customers at some point. A comprehensive, well-maintained database of mortgage products combined with easy submission is something that I could see competing with current-day rate comparison sites.
    Why not pay the developers a per-mortgage license fee (say, $10-$20 depending on what’s being charged for) similar to how online tax websites work these days, instead of going through the broker? Sure, there are still good reasons, but with each additional degree of automation a new set of buyers can decide to cut out the middle man.
    Seems like another possible business opportunity and another possible threat to current broker business models to be aware of.

  2. I suppose you could try to underwrite your own application but the majority of borrower’s still need advice when comparing products and rates in order to make a decision. Also, consider the licensing issues (you can’t broker your own mortgage without being licensed).

  3. Actually I think you can ask 10 different lenders directly about their product offerings and rates and arrange the mortgage on your own house. I don’t think you need to be licensed for that.

  4. I don’t need to be licensed to perform my own dental surgery…. but sometimes it is best to leave it to the professionals.

  5. I agree with JJ, this is going to be helpful for a new agent but those that are expenienced know within minutes of finishing the application and credit check where to place it. Computers are good to a degree but common sense and personal touch wins out everytime. It may introduce agents to new products but at the end of the day experience wins out

  6. I guess the guys at Yellow Pages felt that way about Sergey Brin. The personal touch of that army of Yellow Page salespeople just kicked those Google guys rear ends.

  7. It’s easy to know where to place deals when you use just 5 or 6 lenders. That’s the problem with some “experienced” brokers. They barely even acknowledge other lenders existence, let alone keep up to date on their guidelines.

  8. The article incorrectly states that data needs to entered twice on the Mortgage Mentor program. The truth is that the user does not need to enter any data in order to look through lender guidelines. The broker can focus on any guidelines from any lender right up front. “All The Data All The Time” is part of Mortgage Mentor’s copyrighted design.

  9. Hi Rick,
    We like Mortgage Mentor and have reviewed it here before. But it is in fact a separate program and does require a separate login and separate entry of client parameters in order to filter matching lenders.
    For the purposes here (i.e., finding a suitable lender for a client), a broker could physically scan all of the dozens of columns of lender data in your software, one-by-one, and then manually sort the lenders in their head that fit the client’s criteria.
    The quicker and more elegant method, however, is to use Mortgage Mentor’s powerful filters in the headers of the spreadsheet interface. I found that this let me narrow down the list of lenders/products far more efficiently.
    This is my recollection while testing your software anyhow. Don’t hesitate to correct me if I’m wrong. :)

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