Running a Secondary Best Execution

If you are selling the loan on a flow basis, you can use the Secondary Best Execution (BestEx) feature to determine which investors are eligible to purchase your loan and at what price. 

For additional information download the Secondary User Guide. Clients who are integrated with an LOS should refer to the guide provided in the LOS Integrations category for their respective system.

  1. Select the loan that you want to work with from the Secondary Queue by clicking on the Select link.

  1. Click the Secondary BestEx icon.

The system re-runs the product search and returns a list of investor products with true investor pricing displayed on three tabs.

  • Current Product — This is the default view and will return an expanded pricing grid for the locked product to quickly load and select sell side pricing.
  • Eligible Products — The products meet eligibility requirements, and the current pricing offered by the investor is better-than or equal-to the price requested by your originator. The eligible products are listed by greatest profit. Once selected, this tab will become the default view for the remainder of your current session.
  • Ineligible Products — Displays all “Cannot Determine Eligibility” and “Ineligible” products.
  • Cannot Determine Eligibility — The system cannot determine eligibility based on your search criteria. To identify why eligibility cannot be determined, click the product name or the Show link. The reasons display below the product in the Reasons Eligibility cannot be Determined section.
  • Ineligible — The products have eligibility requirements that are not being met by this loan file. To identify why a product is disqualified, click the product name or the Show link. The disqualifiers display below the product in the Disqualifiers field.
NOTE: If you are working on a combination loan (1st and 2nd liens), you will run the BestEx search separately. The Secondary BestEx (2nd Lien) option in the Secondary navigation is only available when working with combo loans or a standalone second.
  1. Review the product search results. The product requested by the loan officer (the “buy side” information) displays at the top of Best Ex Options section and appears highlighted in the search results.

The system shows information for each product, including the following:

  • Days — The number of days that you will be locking the loan with your investor. 

NOTE: If you have added any delivery pads to your lock periods, the number of days reflects your true investor lock period associated with the loan officer requested lock period.

  • Spread — The difference in points between the price from the investor and the price your originator requested. All programs listed in this Eligible section will show a gain (a positive number in green).

  • Profit — The gain on sale (in dollars) that you would recognize by selling the loan to that particular investor.

  1. If you want to view investor guidelines, hover the mouse over the Guideline Documents icon in the Links column, and select the appropriate document from the list. The Guideline document displays in a new tab in your browser.

  1. To choose a product for your sell-side, select the product name, or click the Show link.

  2. Select a rate from the grid. The information that you select displays below the LO selected product in the Best Ex Options section.

NOTE: If necessary, you can edit the Investor Price.

  1. If enabled, you can launch the Investor’s website in a new browser window by clicking the Investor Website icon in the Links column. The investor website displays in a new tab in your browser, where you can lock the loan with the investor.

  2. Select the Lock with Investor button to save the information in Optimal Blue and to flag the loan as locked with your investor.

NOTE: The Optimal Blue platform does not currently interact with any of the investors’ lock desks. You are responsible for locking the loan directly with your investor.

  1. If you need to manually edit sell side adjustments, us the Sell Side Change Adjustments section of the screen.

  1. The system updates the loan notes accordingly. The loan remains in “Lock Pending” status until you accept or reject the lock request.

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