Marketplace 2.0 throws jabs, LoanSifter responds with upper cut
In a mere three months since the launch of Marketplace 2.0 – a search engine for brokers and lenders created by Lender Price – company officials claim the platform has been propelled as the market leader. However, not everybody agrees.
“It’s our most advanced platform,” Lender Price CEO Dawar Alimi (pictured) told Mortgage Professional America in a telephone interview. “This is the second version with significant advancement – all based on user feedback. Marketplace 2.0 was really created to connect wholesale lenders and brokers to better assist borrowers in locating the most affordable rates and terms.”
Alimi claimed the solution has gained 3,500 users since its launch. One new feature centers on banner ads. “Oftentimes, brokers receive emails from wholesale lenders letting them know what products are available, but they don’t know how to price those products out. What we offer is a new feature with banner ads that says ‘hey, this is a new product.’ When they click on the banner ad, it automatically prices the loan out for them. They don’t even have to think about what the pricing inputs are they need to know.”
The CEO said the product has been enhanced largely through user feedback: “We’re obviously getting feedback since the launch,” Rick Webster, the company’s chief marketing officer, said. “What we’re finding is marketers at the lenders are finding this to be a well-kept secret when it comes to a new leads source for them.”
Alimi boasted of the free service, noting its competitor, LoanSifter, charges $78 monthly – up to $300 with add-ons. “Cost is a huge factor,” he said. “Now with cost and inflation and everything else out there, we felt that offering it for free makes sense. “We can do that because our enterprise pricing system is used by the biggest bank in the nation, the biggest credit union in the nation. The wholesale lenders are the ones who pay us to be in the system. We don’t double dip, our competitor double dips. Our competitor charges the wholesale lender and the broker. We don’t do that.”
Read more: Lender Price launches Marketplace 2.0
LoanSifter spokesman Mitch Cohen sees things decidedly differently. “That is an interesting take,” he said when reached by MPA to comment. “Here’s the reality,” he continued.
As to accusations of double-dipping: “We have both broker and investor/lender clients who use LoanSifter for their own benefits and purposes,” he said. “The reason LoanSifter is such a great tool for mortgage brokers is that it’s an affordable platform that connects them with accurate, timely product and pricing info from over 120 investors/wholesale lenders – the largest of any broker PPE, I believe.”
LoanSifter’s breadth is what lures its users, Cohen said: “That gives brokers access to far more options for their business – and their customers. Since it is such a widely used platform, investors and lenders also see the benefit of having their offerings displayed to as many LoanSifter users as possible. Each party – broker and investor/lender – gains value from the balance. Ultimately, it is the borrowers who benefit most, as the LoanSifter network of brokers and investors provides them with far more mortgage options than would have otherwise been available.”
Read next: Lender Price launches non-QM pricing platform
Alimi counters with blurbs from satisfied Marketplace 2.0 customers, like this one from Vlada Johnson of Village Capital & Investment LLC: “We are loving Marketplace 2.0! We have gotten three times the leads than we had before, and business is booming.” Broker Howard Davies of American Family Funding Group is a fan as well, it would seem: “As a mortgage broker, it is important I keep on top of mortgage rates with lenders we currently work with, but also those we don’t to ensure I am getting the best rates and lender rebates when available for my clients. Lender Price helps me do that and so much more!”
And did Alimi mention it’s free? “In a market where the number of loans originating is declining, every loan counts,” he said. “So you have wholesale lenders looking to work with brokers that they’ve never worked with before. And then you’ve got brokers that are looking for new lenders because you’ve got lenders that are going out of business. So where else are you going to look, whether you’re a lender or a broker? It’s Marketplace because Marketplace brings both sides together. We’re adding new lenders every month and new brokers every month. It’s win-win because they’re able to interact.”
In an ever-competitive market, it appears the battle of the pricing engines is on. Not exactly the Thrilla in Manila, but a spirited competition is surely afoot.
