Independent Mortgage Originators can now use AI and Machine Learning to proactively manage their funding sources
ST. LOUIS -
May 29, 2019 -
PRLog --
McFadden Group, the go-to strategic advisory firm in the mortgage industry, has launched
OptiFunder, a new business to bring automation and optimization to the warehouse management process for residential mortgage originators. The idea for OptiFunder began with the sole objective of informing mortgage originators where they should fund each and every mortgage loan to achieve the absolute lowest monthly cost of warehouse financing. To add more enterprise value, OptiFunder evolved to become the first Warehouse Management Platform for mortgage originators.
Non-banks account for over 60% of the more than $1.5 trillion of annual originations and rely heavily on the use of short-term funding facilities, such as warehouse lines and repurchase facilities, to fund their loans. Given the complex nature of the warehouse Agreements, deciding where to fund each loan is overly complicated and nearly impossible to solve manually. OptiFunder leverages the use of machine learning and a patented optimization algorithm to solve this problem accurately and efficiently. Additionally, OptiFunder integrates the originator with the warehouse lender and document custodian which allows the originator to take a proactive approach to managing warehouse by transferring loans to different facilities, monitoring aged loans, and much more with the objective of achieving the absolute lowest cost of warehouse financing.
Michael McFadden, Founder & Executive Director of McFadden Group and former Stonegate Mortgage executive, teamed up with machine learning and optimization experts to create OptiFunder. "OptiFunder is a very elegant solution to a problem I experienced first-hand while running Finance at Stonegate Mortgage. We would get hit with various non-use fees month over month and not be able to accurately forecast this expense, which did not sit well with me. I knew there had to be a better way. Following the creation of McFadden Group, I began asking other mortgage executives if they faced this same problem. The answer was resoundingly 'yes'. Therefore, I knew there was a market opportunity to create the first Warehouse Management Platform for mortgage originators."
OptiFunder allows mortgage originators to convert a currently manual, costly, and sub-optimized process into a fully automated and financially optimized solution. OptiFunder is crucial to achieving optimal financial results and offering a fully digital mortgage experience. For more information, visit: www.optifunder.com.
About McFadden Group
Founded by Michael McFadden in 2017, McFadden Group was created to fill the void the residential mortgage industry had in trying to make sense of all the data being collected. Unfortunately, for many mortgage companies, data has been a liability. Just like Bill James revolutionized the game of baseball with sabermetrics, McFadden Group is revolutionizing the residential mortgage industry with powerful data analytics. McFadden Group is comprised of experts in data science & architecture, financial analysis, and transactions to turn data into a valuable asset that drives outperformance.
About OptiFunder
OptiFunder is a Fully-Integrated and Automated Warehouse Management Platform for mortgage originators. OptiFunder was created to optimize where originators should fund every loan. It has since evolved to a fully integrated and automated Warehouse Management Platform. You best-ex your loan sales, now you can best-ex your warehouse funding. Until now, the funding process for independent mortgage originators has been a forgotten part of the origination process. OptiFunder revolutionizes the way originators fund loans to achieve the absolute lowest cost.