BACK-TEST ANALYSIS

Back-test showed warehouse cost reduction of $18/loan for national mortgage originator

OptiFunder, the industry’s only Warehouse Management System (WMS), automates funding and loan sale tasks while optimizing warehouse allocation through AI-driven decisioning.

A back-test analysis on a prospective client confirmed significant cost savings by aligning allocations with strategic goals.

The results of that back-test, for a three-month measurement period, are summarized below.

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THE STUDY PARAMETERS

To compare actual warehouse costs to projected savings, OptiFunder analyzed loan-level warehouse expense data from a national mortgage lender.

Key data points analyzed:

  • Interest expenses, fees, non-use charges, and rebates
  • Three warehouse facilities
  • $163 million average monthly funding volume for the measurement period

 

The Results

OptiFunder’s optimization engine demonstrated meaningful cost savings and improved efficiency:

  • Different warehouse selections for 55% of loans
  • Total warehouse cost reduction of $18 per loan
  • Decline in Effective Yield from 7.15% to 7.04%
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FAQ

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What is T2D3?

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Can I use T2D3 on my phone?

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What is so great about the Pro plan?

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TESTIMONIALS

Here's What Clients Have to Say

"We went from -30k interest expense before OptiFunder to $50k in positive carry per month with OptiFunder. OptiFunder is technology that actually does what it's supposed to do."

CEO/CFO, Nations Reliable Lending Joe DeDominicis

"After our OptiFunder demo, we knew we could achieve significant savings. We moved quickly to implement; within a month we were able to start reducing expenses and automating processes."

CFO, Neighborhood Loans Michael Kennemer

"We're excited to harness warehouse optimization to help manage the bottom line and the efficiency gain from automated funding and post-closing to make us even more competitive.”

President, Golden Empire Mortgage Joe Ewens

Get your own back test to see what optimizing warehouse decisions could look like for you.