Author Archives: Optimal Blue

Mortgage Lock Activity Fell in November as Interest Rates Hit Their Highest Levels Since July

Optimal Blue's November 2024 Market Advantage mortgage data report finds overall rate lock volume down 25% month over month, yet 12% higher year over year, providing some reason for optimism

PLANO, Texas, Dec. 10, 2024 (SEND2PRESS NEWSWIRE) — Optimal Blue today released its November 2024 Market Advantage mortgage data report, highlighting a 25% decrease in month-over-month (MoM) lock volume as interest rates hit their highest levels since early July, creating headwinds for affordability.

Image caption: Optimal Blue November 2024 Market Advantage mortgage data report.

Purchase lock volume was down 21% MoM, while cash-out and rate-and-term refinance volumes fell 20% and 50%, respectively. However, year-over-year (YoY) metrics show resilience in the market, with total rate lock volume up 12% from November 2023, purchase volume up a modest 5%, and cash-out and rate-and-term refinances increasing 35% and 95%, respectively, sparking optimism among market watchers.

While high rates prevailed for much of the month, they dropped slightly in the week leading up to the Thanksgiving holiday. The OBMMI 30-year conforming fixed rate index, the benchmark that will be used as the underlying price for CME Group’s new Mortgage Rate futures, finished the month down 11 bps from October. FHA and VA 30-year rates fell as well, closing the month down 7 bps and 20 bps, respectively. The 30-year jumbo rate showed a slight increase to close the month, up 16 bps from the end of October.

Product mix changes mirrored the month’s affordability concerns. FHA loans, which offer as little as 3.5% down and more lenient credit requirements, gained share at the expense of all other loan types, notching up another three-quarters of a point to account for 20% of total production. That puts FHA market share back near its peak of just over 22% of total production in November 2023. VA loan volume fell in November, but is up YoY at 11% of total volume. Government production in total accounted for nearly one-third of loan volume in November.

“The rising percentage of FHA loans indicates affordability continues to be a concern among homebuyers as we move into year-end,” said Brennan O’Connell, director of data solutions at Optimal Blue. “In spite of the recent dip in purchase and refinance activity, we see the YoY improvements in purchase volume, cash-out and rate-and-term refinances as a bright spot.”

Key findings from the Market Advantage report, which are drawn from direct-source mortgage lock data, include:

Rates dip slightly for conforming and government-backed loans: The OBMMI 30-year conforming averaged 30 bps higher in November, though it ended the month at 6.68%, an 11-bps decrease from October. FHA rates dropped by 7 bps to 6.36%, while VA rates dropped 20 bps to 6.16%. The OBMMI jumbo index rate rose a more moderate 16 bps, ending the month at 6.98%.
Purchase lock volume softens: Purchase lock volume was down 21% MoM. Also significant, purchase lock counts – which are a key measure for market health that excludes the impact of HPA and volatile refi activity – were down 3% YoY, breaking a two-month trend of positive YoY momentum.
Conforming loan share continues to fall: Conforming share ended the month below 53%, roughly 20% lower than the peak levels seen in 2020. Non-conforming lending – including both non-QM and jumbo – fell slightly in November. Nevertheless, non-conforming loans remained near their recent market share high at just under 15% – a nearly five-percentage-point increase in market share over the same period last year.
Refinance demand softens: Cash-out and rate-and-term refinance volumes fell 20% and 50%, respectively. However, YoY metrics provide reason for optimism with cash-out and rate-and-term refinances gaining 35% and 95% YoY, respectively.
Credit quality holds steady: Average credit scores for purchase loans were flat at 739, while average scores on refinance locks dropped slightly. Cash-out average credit fell 2 points to 695, and rate-and-term average credit dropped 1 point to 730.
Home prices and average loan amounts dip: In November, the average loan amount dropped from $380.1K to $376.4K. Average home purchase prices ticked down as well, falling from $482.4K to $477.4K.

The full November 2024 Market Advantage report, which provides more detailed findings and additional insights into U.S. mortgage market trends, can be viewed at: https://www2.optimalblue.com/wp-content/uploads/2024/12/OB_MarketAdvantage_MortgageDataReport_Nov2024.pdf.

This month’s Market Advantage podcast features Agha Mirza, CME Group managing director and global head of rates and OTC products, a guest commentator. The podcast can be accessed at: https://market-advantage.captivate.fm/listen.

About the Market Advantage Report:

Optimal Blue issues the Market Advantage mortgage data report each month to provide early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE – the mortgage industry’s most widely used product, pricing, and eligibility engine – the Market Advantage provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders’ pipelines.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue:

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry’s only end-to-end capital markets platform. The company helps lenders of all sizes and scopes maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that, in any market environment, allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit OptimalBlue.com.

MULTIMEDIA:

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NEWS SOURCE: Optimal Blue

This press release was issued on behalf of the news source (Optimal Blue), who is solely responsible for its accuracy, by Send2Press Newswire. Image, if any, was provided by the news source and not this website or the wire service. Information is believed accurate, as provided by the news source, but is not guaranteed.

To view the original story, visit: https://www.send2press.com/wire/mortgage-lock-activity-fell-in-november-as-interest-rates-hit-their-highest-levels-since-july/

Optimal Blue Announces Tony Hawk, Housing Industry Leaders to Headline Inaugural User Conference

Robust speaker lineup includes a leading economist, an editor in chief, tech leaders, and Optimal Blue's team of subject matter experts

PLANO, Texas, Dec. 5, 2024 (SEND2PRESS NEWSWIRE) — Optimal Blue today announced the speaker lineup for its inaugural user conference, the Optimal Blue Summit 2025. Legendary skateboarder and entrepreneur Tony Hawk will headline the event. The conference will also feature sessions led by Mortgage Bankers Association (MBA) Chief Economist and Senior Vice President of Research and Business Development Michael Fratantoni, Ph.D., MBA Associate Vice President of Secondary and Capital Markets Sasha Hewlett, AMP, HousingWire Editor in Chief Sarah Wheeler, and representatives from Microsoft.

Image caption: Optimal Blue Announces Tony Hawk, Housing Industry Leaders to Headline Inaugural User Conference.

The Optimal Blue Summit will take place Feb. 3–5, 2025, at the Marriott Marquis San Diego Marina, bringing together clients from across primary and secondary mortgage networks to connect, learn, and share best practices for maximizing lending profitability. In addition to an engaging speaker lineup, the three-day event will feature sessions led by Optimal Blue’s team of subject matter experts, as well as major product announcements, focus groups, and opportunities for networking.

“The Optimal Blue Summit will bring the mortgage industry together for valuable content, knowledge-sharing, and opportunities to optimize technology and data to gain a competitive advantage,” said Sara Holtz, chief marketing officer of Optimal Blue. “We are curating an impressive speaker lineup for our attendees that includes respected names from Optimal Blue, industry organizations, and beyond to provide our customers with actionable insights so they can reach their highest productivity and profit potential.”

Agenda highlights include:

Insights into Optimal Blue’s product roadmap and demonstrations of newly launched features
A 2025 economic outlook from Michael Fratantoni, Ph.D., followed by a deeper dive discussion on the secondary and capital market outlook from Sasha Hewlett, AMP, who serves as staff representative for the MBA Secondary and Capital Markets Committee
Observations from native San Diegan Tony Hawk, a legendary skateboarder, entrepreneur, and founder of The Skatepark Project (TSP), a nonprofit organization helping to build safe and inclusive public skateparks in underserved communities
AI-focused panels featuring a cloud solution architect and a technical leader from Microsoft, focused on maximizing productivity and profitability with AI in lending operations

Additional details and registration information are available on the Optimal Blue Summit 2025 webpage at https://www2.optimalblue.com/optimal-blue-summit/.

About Optimal Blue:

MULTIMEDIA:

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NEWS SOURCE: Optimal Blue

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October Mortgage Lock Data Shows Resilience and Cracks in the Mortgage Market as Interest Rates Tick up 65 Basis Points

Optimal Blue's October 2024 Market Advantage mortgage data report shows strong purchase mortgage growth, though a shift away from conforming loans signals strained affordability

PLANO, Texas, Nov. 12, 2024 (SEND2PRESS NEWSWIRE) — Optimal Blue today released its October 2024 Market Advantage mortgage data report, highlighting resilient purchase activity in the face of rising interest rates and affordability challenges. Despite a 65-basis-point (bps) increase in the Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming rate, purchase lock volume grew by 12% month over month (MoM), signaling strong demand among homebuyers. The report also shows a notable shift away from conforming loans, indicating affordability concerns are pushing buyers toward alternative financing options.

Image caption: Optimal Blue: National Rate Lock Metrics Oct. 2024.

“Despite a tough rate trajectory, we saw strong growth in both purchase lock volume and counts, which are both positive signals for mortgage production,” said Brennan O’Connell, director of data solutions at Optimal Blue. “While purchase growth is encouraging, signs of how buyers are adapting to higher rates indicate continued affordability pressures. Production mix data shows a shift from conforming loans to FHA and non-conforming products, which often offer more flexible financing terms.”

Key findings from the Market Advantage report, which are drawn from direct-source mortgage lock data, include:

Rates rise across the board: The OBMMI 30-year conforming rate ended October at 6.79%, marking a 65-bps increase from September. FHA rates rose by 54 bps to 6.43%, while VA rates saw the largest increase, climbing 73 bps to 6.36%. The OBMMI jumbo index rate rose a more moderate 41 bps to end at 6.82%.
Purchase lock volume grows despite rate increases: Purchase lock volume rose 12% MoM. Also significant, purchase lock counts – which are a key measure for market health that excludes the impact of HPA and volatile refi activity – rose 9% year over year (YoY), continuing a positive trend that started in September. This increase in purchase locks reflects ongoing demand.
Affordability concerns shift production mix: Conforming loan share fell to its lowest point since tracking began in 2018, now representing 53% of volume. At the same time, FHA locks rose, accounting for one in five purchase transactions, as buyers sought more accessible financing options. Non-conforming loans also gained ground as borrowers leaned more heavily on non-QM and jumbo loans to adapt to affordability challenges.
Refinance demand softens: The rise in rates dampened refinance interest, with rate-and-term refinance volume dropping 45% MoM. Cash-out refinance activity saw a slight 6% increase, but the overall refinance share declined to 23% of total volume. With the exception of August and September 2024, refinance levels were still higher than any other month since April 2022.
Credit quality declines in refinance sector: Average credit scores remained high for purchase loans; however, refinance credit scores, particularly for rate-and-term refinances, saw a drop, with the average score declining by 6 points to 730.
Home prices trend upward while average loan amounts dip: October saw a second consecutive month of home price increases, with the average purchase price rising from $475.8K to $482.4K. Meanwhile, the average loan amount fell by $3.6K to $380.1K.

The full October 2024 Market Advantage report, which provides more detailed findings and additional insights into U.S. mortgage market trends, can be viewed at (PDF): https://www2.optimalblue.com/wp-content/uploads/2024/11/OB_MarketAdvantage_MortgageDataReport_Oct2024.pdf.

This month’s Market Advantage podcast features Dave Savage, chief innovation officer at TrustEngine and founder of Mortgage Coach, as a guest commentator. The podcast can be accessed at: https://market-advantage.captivate.fm/listen.

About the Market Advantage Report

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue

NEWS SOURCE: Optimal Blue

To view the original story, visit: https://www.send2press.com/wire/october-mortgage-lock-data-shows-resilience-and-cracks-in-the-mortgage-market-as-interest-rates-tick-up-65-basis-points/

Optimal Blue Promotes Industry Experts to New Executive Roles to Accelerate Innovation and Prioritize Partnerships

Erin Wester Promoted to Chief Product Officer and Mike Vough Promoted to Head of Corporate Strategy

PLANO, Texas, Nov. 11, 2024 (SEND2PRESS NEWSWIRE) — Optimal Blue today announced two key executive promotions that will position the company to deliver innovation faster across the company’s entire capital markets platform, and to further expand the company’s network of partners. Erin Wester has been promoted to chief product officer and Mike Vough has been promoted to head of corporate strategy.

Image caption: (L-R) Erin Wester and Mike Vough.

“At Optimal Blue, we are very fortunate to not only have the latest and most accurate technology in the industry, but we also have proven industry experts that bring incredible experience in all aspects of secondary marketing. By aligning all product strategy under a mortgage technology expert like Erin, we will accelerate the delivery of value and innovation to our clients,” said Joe Tyrrell, CEO of Optimal Blue. “We’re not just building new client value; we are also actively acquiring and partnering. As the leading secondary marketing platform in the industry, it is important that we are complementing our own innovation with both acquired solutions and strategic partnerships to do more for our clients. Mike’s background in all aspects of capital markets, business enablement and growth strategy will enable us to move quicker here as well.”

Wester, who was formerly focused on the company’s product and pricing solutions, will now oversee product strategy for the entire Optimal Blue capital markets platform, which includes product and pricing, broker pricing solutions, hedging and trading platforms, investor services solutions, Comergence compliance solutions, user experience and design departments, and the integrations department. She will also lead Optimal Blue’s initiative to deliver more value to clients without incremental costs to ultimately improve their ROI.

“I have never been more excited about our future at Optimal Blue,” said Wester. “We have a new UI, a full GenAI suite with our new AI assistants, we have prioritized originators in our automation roadmap. We are completely opening up our configuration capabilities to our clients, and also engaging in custom solutions. But what is most exciting is that everything we are doing is being driven by our mission to improve our clients’ profitability on every loan, which means a lot of what we are delivering will be at no incremental cost to our clients.”

Vough, who was previously leading the strategy for Optimal Blue’s hedging and trading solutions, will now focus on corporate strategy, which includes business development to support the company’s integration partner network, as well as corporate development to drive its acquisition strategy. Vough will also drive the continued growth of Optimal Blue’s data business, including the company’s data reseller partners.

“While other companies are losing executives and struggling to support customers, we are growing and expanding,” said Vough. “As Erin and our amazing product teams are quickly driving innovation, we will complement their efforts by providing our partners with incredible support and tools to enable them to deliver more value faster to our clients, while also evaluating potential acquisitions that can assist us in expanding our offerings to help our lenders and investors capitalize on more opportunities.”

Optimal Blue clients are invited to attend the inaugural Optimal Blue Summit February 3–5, 2025, at the Marriott Marquis San Diego Marina, where major product announcements will be made live. Additional details and registration information for the Summit are available on the Optimal Blue Summit 2025 webpage.

About Optimal Blue

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Image caption: (L-R) Erin Wester and Mike Vough.

NEWS SOURCE: Optimal Blue

To view the original story, visit: https://www.send2press.com/wire/optimal-blue-promotes-industry-experts-to-new-executive-roles-to-accelerate-innovation-and-prioritize-partnerships/

Optimal Blue Announces Three Major Product Releases, Continuing Streak of Aggressive Product Innovation and No-Cost Feature Additions

Company expands AI assistant suite, releases tool to help originators identify most favorable loan scenario, and makes data benchmarking product available to investors at no cost

PLANO, Texas, Oct. 28, 2024 (SEND2PRESS NEWSWIRE) — Optimal Blue today announced three major product releases: the expansion of its AI assistant suite, the introduction of Scenario Optimizer, and the free availability of Investor Pricing Insight to investor clients. These product updates build on the company’s commitment to rapidly delivering high-impact solutions that tackle real-world challenges while helping clients maximize profitability.

Image caption: Optimal Blue.

“At Optimal Blue, we are setting an even higher bar for mortgage technology innovation by investing in advanced technologies that deliver value-based, first-of-their-kind features at no additional cost,” said Joe Tyrrell, CEO of Optimal Blue. “Each of these newly announced updates helps our clients address changing market conditions with agility, clarity, and precision. From loan officers to secondary marketing teams and investors, we empower mortgage professionals with tools designed to maximize their profitability on every loan transaction.”

EXPANDED AI ASSISTANT SUITE

Optimal Blue has expanded its suite of AI-powered assistants available within the CompassEdge hedging and trading platform with the launch of Position Assistant and the enhanced functionality of Profitability Assistant. This development builds on Optimal Blue’s July 2024 introduction of its first three AI-powered assistants, which help secondary marketing teams better manage risk and profitability with real-time insights that simplify complex data analysis.

The Optimal Blue Position Assistant provides mortgage lenders with critical daily insights into changes in their risk exposure by automatically summarizing the top drivers that impact their hedged mortgage pipeline positions. Profitability Assistant’s daily insights overview has been enhanced with a monthly view of key profitability drivers that allow users to assess performance quickly.

The AI assistant will be demoed live at the Mortgage Bankers Association Annual Convention and Expo on Tuesday, Oct. 29. The demo is part of the AI Tech Showcase, which will take place on THE HUB STAGE from 1:30 to 3 p.m. MT.

SCENARIO OPTIMIZER

The addition of Scenario Optimizer to Optimal Blue’s product, pricing, and eligibility (PPE) engine enables loan originators to quickly identify the most favorable loan scenarios for borrowers by automatically generating side-by-side loan comparisons. The feature boosts loan officer productivity while strengthening relationships with borrowers by delivering fast, digital service and transparent pricing guidance.

INVESTOR PRICING INSIGHT

Optimal Blue’s Investor Pricing Insight data solution is now available at no cost to investor users. Additionally, Optimal Blue has introduced new functionality to the solution that allows investors to benchmark their non-qualified mortgage (non-QM) rate sheet pricing against other investors in real time. Introduced in 2022, Investor Pricing Insight allows correspondent and wholesale investors to benchmark their pricing against competitors.

Additional new product announcements will be introduced live at the Optimal Blue Summit, a national user conference that will be held February 3–5, 2025, at the Marriott Marquis San Diego Marina. Additional details and registration information for the Summit are available on the Optimal Blue Summit 2025 website.

About Optimal Blue

To learn more, visit https://OptimalBlue.com/.

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Rate-and-Term Refinance Locks Surge 700% Over Previous Year Following the FOMC’s September Interest Rate Reduction

Optimal Blue's September 2024 Market Advantage mortgage data report released in conjunction with the inaugural Market Advantage podcast featuring Mortgage Bankers Association economist Joel Kan guest commentator

PLANO, Texas, Oct. 8, 2024 (SEND2PRESS NEWSWIRE) — Optimal Blue today released its September 2024 Market Advantage mortgage data report, which found a 50% month-over-month (MoM) increase in rate-and-term refinance activity as people who purchased homes in recent years jumped at the opportunity to lower their interest rates and mortgage payments. While the Federal Open Market Committee (FOMC) lowered its target federal funds rate by 50 bps on Sept. 18, the market had already priced in a portion of the rate reduction, leading to a full month of increased refinance activity in September.

Image caption: Optimal Blue Sept. 2024 Report.

“Refinance production has been trending higher for a few months now as mortgage rates rallied, but purchase activity had been stubbornly stagnant. However, September volumes indicate the tide may be turning,” said Brennan O’Connell, director of data solutions at Optimal Blue. “Excluding April of this year, which was impacted by the timing of Easter, September marks the first month with a year-over-year (YoY) increase in purchase locks since the Fed began raising rates in Spring of 2022. As we move into Q4, this is a very encouraging sign that the market may have found a floor and production is on the upswing.”

Key findings from the Market Advantage report, which are drawn from direct-source mortgage lock data, include:

Refinance volumes surge: On an absolute basis, refinance production reached the highest level seen since January 2022. Rate-and-term refinance lock volume was up nearly 50% MoM and 700% YoY. Cash-out refinance volume rose a more modest 6% MoM but was still up more than 50% YoY.
Mortgage rates fall across the board: The Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming benchmark interest rate dropped 23 bps, while jumbo, FHA, and VA rates were down 22, 25, and 16 bps, respectively. The drop in mortgage interest rates did not directly correspond to the 50 bps FOMC rate cut because an anticipatory market had already priced a reduction in rates leading into September.
Conventional and VA production grew market share: The share of conforming loan production rose roughly .5% to 54.4%, and the share of non-conforming production – including jumbo and non-QM loans – rose .25% to 12.6%. The share of FHA loans fell roughly 1% to 18.7%, while VA rose .2% to 13.7%.
Average borrower credit increased across the board: The credit scores of rate-and-term refinance borrowers rose an average of 6 points to 737. The average conventional borrower credit score rose to 757, the highest since December 2020.
Average loan amounts and home prices rose: From August 2024 to September 2024, the average loan amount increased from $372.4K to $383.7K. The average home purchase price ticked up $10K to $475.8K after falling the previous two months.

The inaugural Market Advantage podcast has been released today in conjunction with the September Report. This month’s podcast features Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, as a guest commentator. The podcast can be accessed at: https://market-advantage.captivate.fm/listen.

The full September 2024 Market Advantage report, which provides more detailed findings and additional insights into U.S. mortgage market trends, can be viewed at: https://www2.optimalblue.com/wp-content/uploads/2024/10/OB_MarketAdvantage_MortgageDataReport_Sept2024.pdf.

About the Market Advantage Report:

Formerly known as the Originations Market Monitor, Optimal Blue issues the Market Advantage mortgage data report each month to provide early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE – the mortgage industry’s most widely used product, pricing, and eligibility engine – the Market Advantage provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders’ pipelines.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue

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NEWS SOURCE: Optimal Blue

To view the original story, visit: https://www.send2press.com/wire/rate-and-term-refinance-locks-surge-700-over-previous-year-following-the-fomcs-september-interest-rate-reduction/

Optimal Blue Expands Expertise, Market Leadership With Launch of Two In-House Podcasts

Weekly Optimal Insights podcast provides timely market analysis; monthly Market Advantage podcast will complement existing mortgage data report

PLANO, Texas, Oct. 1, 2024 (SEND2PRESS NEWSWIRE) — Optimal Blue announced the release of two in-house podcasts that extend the reach of the company’s capital markets experience and expertise built over its decades as the technology leader in its space. The Optimal Insights podcast and video, which will be released weekly, will provide timely analyses of market factors impacting loan originators and capital markets professionals. Additionally, the Market Advantage podcast will complement the company’s popular monthly Market Advantage mortgage data report to deliver additional commentary and guest interviews.

Image caption: Optimal Blue.

“Optimal Blue is committed to sharing our unmatched depth of capital markets expertise with our clients,” said Sara Holtz, chief marketing officer of Optimal Blue. “By adding weekly, point-in-time market analysis via the Optimal Insights podcast, as well as deeper data insights and guest discussions by way of the Market Advantage podcast, we expand our outreach and extend additional, no-cost value into the industry.”

The first episode of the Optimal Insights podcast is now available, and the initial episode of the Market Advantage podcast will be released in tandem with Optimal Blue’s monthly mortgage data report in early October. Viewers can access both productions via the Optimal Blue LinkedIn page and on major podcast platforms.

“Our clients and industry partners have long relied on Optimal Blue for trusted insights and commentary, and these podcasts are an evolution of our commitment to keeping the industry informed,” said Jim Glennon, vice president of hedging and trading client services at Optimal Blue. “We have worked in the trenches throughout all market cycles, and we are thrilled to share our expertise in these new ways.”

For additional market insights and analysis, Optimal Blue clients are encouraged to attend the inaugural Optimal Blue Summit, which will take place February 3–5 at the Marriott Marquis San Diego Marina. Additional details and registration information for the Summit are available on the Optimal Blue Summit 2025 webpage at: https://www2.optimalblue.com/optimal-blue-summit/.

About Optimal Blue

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NEWS SOURCE: Optimal Blue

To view the original story, visit: https://www.send2press.com/wire/optimal-blue-expands-expertise-market-leadership-with-launch-of-two-in-house-podcasts/

Optimal Blue Rolls Out Innovations in New UI, Gen AI, Originator Capabilities and New No-Cost Solutions

PLANO, Texas /ScoopCloud/ -- Optimal Blue today announced its extensive plans for innovation across its complete capital markets technology ecosystem leading up to its Optimal Blue Summit, where innovations will be unveiled live.

"Our focus is on client profitability, so we are investing and delivering in areas that will have the biggest impact on a lender's bottom line," said Joe Tyrrell, CEO of Optimal Blue. "We're rolling out our new intuitive UI to all clients, introducing new tools to help loan originators be more effective and efficient, and delivering automation solutions to address real operational issues through our new GenAI capabilities - all at no cost to our clients. We are also introducing new data solutions at no incremental costs for clients and shifting a number of our current solutions to unlimited usage models to help our clients get the most out of our innovations."

New capabilities will be introduced into the core platform beginning in mid-September and continuing through the Optimal Blue Summit, a national user conference being held in San Diego in February. For originators, areas of innovative focus include new origination tools, such as true side-by-side loan scenario comparison functionality, simplified capabilities for configuration and margin management, and a new GenAI solution.

"We are focusing on delivering new value, at no additional cost, in order to help our clients improve their ROI on every loan," said Erin Wester, VP of product management for Optimal Blue. "I'm thrilled about our ability and commitment to innovate in ways that directly allow Optimal Blue clients to even further increase the value they currently receive, all while we continue to lead the market in our use of APIs and automation."

Generative AI solutions that address specific secondary market use cases, will be unveiled across all Optimal Blue's capital markets solutions. This initiative began with the company's Profitability Assistant, designed to help chief financial officers and capital markets executives better manage gain and loss down to the individual loan. New AI capabilities will continue to be added to the hedging and loan trading platform, and will be expanded into the Optimal Blue PPE, in the next two quarters. The GenAI solutions will culminate with a definitive GenAI "ask" functionality that will be unmatched in terms of the value lenders realize, solving complex business challenges and identifying critical profitability opportunities by clients simply asking a question.

"Optimal Blue has committed to significant investments in GenAI, providing these capabilities at no additional cost to our clients, and our engineering team is excited to build solutions that solve real problems and see high levels of utilization," said Seever Sulaiman, Optimal Blue chief technology officer. "These capabilities along with our machine-learning functionality, will enable automation for the entire end-to-end capital markets lifecycle, from origination through trading, making the data and processes more efficient, more accurate, and substantially faster."

Optimal Blue clients are invited to attend the inaugural Optimal Blue Summit February 3-5 at the Marriott Marquis San Diego Marina, where major product announcements will be made live. Additional details and registration information for the Summit are available on the Optimal Blue Summit 2025 webpage at https://www2.optimalblue.com/optimal-blue-summit/.

About Optimal Blue

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that, in any market environment, allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit OptimalBlue.com.

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Optimal Blue today announced its extensive plans for innovation across its complete capital markets technology ecosystem leading up to its Optimal Blue Summit, where innovations will be unveiled live. New capabilities will be introduced into the core platform beginning in mid-September and continuing through the Optimal Blue Summit, a national user conference being held in San Diego in February.

Related link: https://www2.optimalblue.com/

Rate-and-Term Refinances Surge 109% MoM in August as Mortgage Rates Decline

PLANO, Texas /ScoopCloud/ -- Optimal Blue today released its August 2024 Market Advantage mortgage data report, which reveals an overall 1% rise in rate lock volume despite the typical seasonal slowdown in purchase lending. Lock volume growth was driven by a surge in refinance activity as homeowners reacted to declining mortgage rates.

"Refinance activity, particularly rate-and-term refinances, surged as mortgage rates declined across all loan types," said Brennan O'Connell, director of data solutions at Optimal Blue. "Notably, August saw a remarkable 109% month-over-month (MoM) increase in rate-and-term refi volume in response to a 31-basis-point drop in the benchmark OBMMI 30-year conforming rate, which ended the month at 6.37%. Rate-and-term refi activity was up 300% from the same period last year."

Key findings from the Market Advantage report, which are drawn from direct-source mortgage lock data, include:

* Refinance volume spikes and purchase volume falls: Refinances now account for 26% of total production, the highest level since March 2022, when the Federal Reserve began increasing interest rates. Rate-and-term refinance volume more than doubled in August, rising 109% MoM, while cash-out refinances also saw a more modest increase of 8%. Purchase volume fell by 10% MoM.

* Mortgage rates decline: 30-year mortgage rates trended downward in August across all loan types, with the biggest shift in FHA rates, which fell by 40 bps to 6.13%, and the smallest shift occurring in conforming rates, which fell by 31 bps to 6.37%.

* Narrowed spreads provide more refinance incentive: The 10-Year Treasury yield decreased by 18 bps to 3.91%, with the spread between the 10-Year Treasury and the 30-year conforming mortgage rate narrowing by 13 bps to 246 bps. This marks a significant improvement in the spread, which has fallen by over 50 bps from the same period last year.

* Purchase counts reflect persisting challenges for homebuyers: Despite the increase in refinance activity, purchase lock counts - a key indicator of housing market conditions - dropped 16% YoY due to continued affordability and inventory challenges. Purchase locks are down 45% over August 2019.

* 2024 FHA and purchase borrowers' credit scores at highest in seven years: Throughout 2024, monthly average credit scores have been higher than average for FHA borrowers (675.3), as well as for borrowers seeking purchase loans (736.4), than any other month dating back to January 2018, when Optimal Blue started tracking the data. The average credit score across all production in August 2024 was 731.

* Loan amount and purchase price: The average loan amount rose from $369.1K to $372.4K, while the average purchase price fell from $471K to $465.5K.

View the full August 2024 Market Advantage report, which provides more detailed findings and additional insights into U.S. mortgage market trends, at (PDF): https://www2.optimalblue.com/wp-content/uploads/2024/09/OB_MarketAdvantage_MortgageDataReport_August2024.pdf.

About the Market Advantage Report:

Formerly known as the Originations Market Monitor, Optimal Blue issues the Market Advantage mortgage data report each month to provide early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE - the mortgage industry's most widely used product, pricing, and eligibility engine - the Market Advantage provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders' pipelines.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that, in any market environment, allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit OptimalBlue.com.

Optimal Blue today released its August 2024 Market Advantage mortgage data report, which reveals an overall 1% rise in rate lock volume despite the typical seasonal slowdown in purchase lending. Lock volume growth was driven by a surge in refinance activity as homeowners reacted to declining mortgage rates.

Related link: https://www2.optimalblue.com/

Optimal Blue to Host Inaugural Industry Summit February 3-5, 2025

PLANO, Texas /ScoopCloud/ -- Optimal Blue today announced it will host its inaugural Optimal Blue Summit from February 3-5, 2025, at the Marriott Marquis San Diego Marina. Set against the scenic backdrop of San Diego Bay, the Optimal Blue Summit 2025 will bring together clients from across primary and secondary mortgage networks to connect, learn, and share best practices for pricing and profitability.

This three-day event will feature engaging panels and multi-track sessions led by leading economists, policymakers, lenders, and Optimal Blue's team of subject matter experts to provide attendees with unique tools and insights they need to optimize their competitive advantage in today's dynamic market.

"Optimal Blue has a distinct depth of expertise and resources built and refined over decades as the industry leader," said Joe Tyrrell, CEO of Optimal Blue. "Our Summit will deliver new value to all of our clients and partners through announcements of new innovation and sharing of best practices and ideas from experts in closing more business at higher levels of profitability. Working with Optimal Blue has always helped clients maximize their profitability, and we look forward to bringing the industry together for uniquely valuable content and connections they cannot access elsewhere."

Highlights from the event will include:

* Generative AI roadmap: Be the first to hear about the latest updates to the Optimal Blue product roadmap, including AI and automation advancements.

* Loan officer tools: Discover more about a new suite of solutions designed and built to help loan officers close more business, faster.

* Market insights: Gain exclusive access to original market analysis, customer behavior trends, and emerging opportunities to optimize lending strategies and make informed decisions.

* Best practice sharing: Learn how leading lenders and capital markets experts leverage Optimal Blue solutions to navigate market challenges and achieve superior results.

* Feedback forums: Participate in product feedback sessions, focus groups, and user forums to shape the future of Optimal Blue's offerings.

* Networking opportunities: Connect with industry peers, lenders, capital markets leaders, economists, policymakers, and technology partners through interactive sessions, idea exchanges, and fun, shared experiences.

Additional details and registration information are available on the Optimal Blue Summit 2025 webpage at https://www2.optimalblue.com/optimal-blue-summit/.

About Optimal Blue

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that, in any market environment, allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit OptimalBlue.com.

Optimal Blue today announced it will host its inaugural Optimal Blue Summit from February 3-5, 2025, at the Marriott Marquis San Diego Marina. Set against the scenic backdrop of San Diego Bay, the Optimal Blue Summit 2025 will bring together clients from across primary and secondary mortgage networks to connect, learn, and share best practices for pricing and profitability.

Related link: https://www2.optimalblue.com/

July Refinance Activity Hits Highest Levels Since September 2022

PLANO, Texas /ScoopCloud/ -- Optimal Blue today released its July 2024 Market Advantage mortgage data report, which revealed that mortgage refinance demand surged to levels not seen since September 2022 amid softening interest rates. The lower interest rates seen in July also coaxed increased purchase activity, which, combined with greater refi activity, drove a 3.5% month-over-month (MoM) increase in mortgage rate lock volumes.

"The July report shows a notable uptick in refinance activity, particularly rate-and-term refinances, which jumped 12% as borrowers responded to declining interest rates," said Brennan O'Connell, director of data solutions at Optimal Blue. "The drop in the Optimal Blue Mortgage Market Indices 30-year conforming rate to 6.67% played a significant role in this growth, and we observed the highest level of refinance activity since September 2022."

Key findings from the Market Advantage report, which are drawn from direct-source mortgage lock data, are:

* Increase in rate lock volume: Overall rate lock volume rose by 3.5% MoM, with purchase activity up 2.5% and refinance activity showing even stronger growth. Cash-out refinance volume grew by 5.9% MoM, while rate-and-term refinance activity surged 12.3%, reflecting borrower sensitivity to lower rates.

* Purchase lock count growth: Purchase lock counts grew by 2.5% MoM in July, though they remained down 7% year-over-year (YoY). This is a significant improvement over June's 17% YoY decline, suggesting a potential stabilization in purchase demand as the market adjusts.

* Refinance activity surge: Refinance activity reached its highest level since September 2022, with the refinance share growing to 17% of total volume - an 81-basis-point increase from June and a 472-basis-point rise YoY. This aligns with trends in the OBMMI 30-year conforming rate, which ended July 2024 at 6.67%, nearly identical to the 6.68% rate that closed out September in 2022.

* Rate and treasury movements: The OBMMI 30-year conforming rate ended July at 6.67%, down 26 basis points from June. Meanwhile, the 10-year Treasury yield dropped by 27 basis points to 4.09%. The spread between the 30-year conforming rate and the 10-year Treasury remained stable at 258 basis points, an uptick of just 1 basis point.

* Shift in loan mix: The loan mix in July shifted toward agency production. Conforming loans increased market share to 56.1% (+18 bps), FHA loans grew to 19.0% (+61 bps), and VA loans rose to 11.9% (+22 bps). Conversely, non-conforming loans, including jumbo and non-QM, saw a decline in market share, falling to 12.4% (-107 bps).

* Decrease in average loan amount: The average loan amount decreased from $374K in June to $369K in July, reflecting the shift away from non-conforming loan types.

* Stable credit quality: Credit scores remained stable, with the average score holding steady at 732.

The full July 2024 Market Advantage report provides more detailed findings and additional insights into U.S. mortgage market trends (PDF): https://www2.optimalblue.com/wp-content/uploads/2024/08/OB_MarketAdvantage_MortgageDataReport_July2024.pdf.

About the Market Advantage Report:

Formerly known as the Originations Market Monitor, Optimal Blue issues the Market Advantage mortgage data report each month to provide early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE - the mortgage industry's most widely used product, pricing, and eligibility engine - the Market Advantage provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders' pipelines.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that, in any market environment, allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit https://OptimalBlue.com/.

Optimal Blue today released its July 2024 Market Advantage mortgage data report, which revealed that mortgage refinance demand surged to levels not seen since September 2022 amid softening interest rates. The lower interest rates seen in July also coaxed increased purchase activity, which, combined with greater refi activity, drove a 3.5% month-over-month (MoM) increase in mortgage rate lock volumes.

Related link: https://www2.optimalblue.com/

Optimal Blue Launches New Generative AI Assistant Capabilities

PLANO, Texas /ScoopCloud/ -- Optimal Blue today announced the delivery of generative AI capabilities centered on helping lenders maximize profitability on every loan transaction. Through direct engagement with its thousands of clients, the company has begun delivering generative AI capabilities built for secondary-market-specific use cases and purposefully designed to solve the real-world challenges that mortgage lenders face. The company's launch of AI assistants has initiated with the release of three new AI capabilities in Optimal Blue's CompassEdge hedging and loan trading platform.

"Optimal Blue's priority is to continuously maximize profitability for lenders on every single loan, and generative AI affords us infinite opportunities to do so," said Joe Tyrrell, CEO of Optimal Blue. "We deploy an intentional approach to developing and delivering AI assistants with machine learning capabilities that are based on actual opportunities and challenges lenders are facing. At a time when there is so much noise in the industry with companies claiming to have AI, at Optimal Blue, we are delivering true AI with the sole purpose to increase profitability for lenders, so all of these generative AI capabilities are being provided to our clients at no additional cost. We believe that core innovation shouldn't represent incremental cost, but rather should be what you expect out of your partner."

Optimal Blue Chief Technology Officer Seever Sulaiman, who has led the development and adoption of the company's AI framework, added, "We've established a foundation for implementing AI capabilities across the entire organization. Our engineering team has been trained on utilizing AI tools internally to enhance productivity. This has, in turn, positioned us to deliver AI capabilities and other value-add innovation to our clients even faster."

As part of its directed focus on AI, Optimal Blue has channeled its decades of experience and expertise to launch three new AI-powered assistants in its CompassEdge platform. These capabilities - a Profitability Assistant designed for chief financial officers (CFOs), a Projections Assistant designed for capital markets leaders, and a Trade Assistant designed for leaders of a lender's trading desk - all help lenders reduce manual processes associated with profitability attribution, calculating projections, and optimizing trade selection.

"Secondary teams are responsible for maximizing pipeline profitability and communicating results to their executive teams, but doing so is fraught with time-consuming analyses, complex calculations, and inevitable human bias," said Mike Vough, vice president of hedging and trading products at Optimal Blue. "We built the AI-powered assistants in CompassEdge with these pain points in mind so our clients can benefit from more accuracy and less manual work, all in favor of more basis points and greater profitability. We estimate that these assistants can help save a secondary marketing manager up to 30 hours a month in some instances - valuable time that can instead be channeled toward more strategic work."

The first new capability in CompassEdge, Profitability Assistant, uses generative AI to write a succinct summary of the top drivers that caused a gain or loss of profitability in a pipeline, including new locks, fallout, loan sales, bulk AOT, and more. Designed specifically for CFOs and other members of a lender's executive team, these summaries promote greater transparency between secondary and the C-suite.

Another new capability, Projections Assistant, uses AI to predict the real-time impact of various factors on the risk profile of a hedged mortgage pipeline, including originations, fallout, loan sales, and more. Otherwise requiring a seasoned capital markets professional, Projections Assistant automates the consumption of Optimal Blue's extensive data sets and completes complex calculations to deliver extremely granular projections for position management.

Finally, Trade Assistant uses AI to reduce the guesswork that goes into the selection of a hedge, a process that would otherwise require an experienced capital markets professional. With one click, the tool suggests a combination of sells, buys, rolls, and swaps to maximize effectiveness in alignment with a lender's hedge policy, while minimizing transaction cost.

All three AI assistants are available to CompassEdge users for no additional fee.

About Optimal Blue:

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that, in any market environment, allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit https://OptimalBlue.com/

Optimal Blue today announced the delivery of generative AI capabilities centered on helping lenders maximize profitability on every loan transaction. Through direct engagement with its thousands of clients, the company has begun delivering generative AI capabilities built for secondary-market-specific use cases and purposefully designed to solve the real-world challenges that mortgage lenders face.

Related link: https://www2.optimalblue.com/

Falling Home Prices and Purchase Mortgage Locks Reveal a Stagnant Late-Spring Housing Market

PLANO, Texas /ScoopCloud/ -- Optimal Blue today released its June 2024 Market Advantage mortgage data report, which revealed a stagnant late-spring housing market as home prices dropped for the first time in 2024 and purchase lock counts fell 8% over the previous year. All mortgage lock figures in this news release have been controlled for fewer market days in June.

"Despite an improvement in interest rates, purchase activity was subdued in June. However, many homeowners with higher rates - particularly those who closed on their mortgage in the last 12 to 18 months - jumped at the opportunity to refinance, even for a small reduction in monthly payments. This behavior speaks to the ongoing inventory and affordability challenges consumers are experiencing," said Brennan O'Connell, director of data solutions at Optimal Blue. "As we look toward the back half of 2024 and the potential for rate relief from the Fed, purchase lock counts will provide insight into if and when production will turn the corner."

Key findings from the Market Advantage report, which are drawn from direct-source mortgage lock data are:

* Small dip in interest rates: The benchmark OBMMI 30-year conforming rate bottomed out on June 13 at 6.810% before ending the month at 6.938%, 8 bps lower than the close of May. The retreat in mortgage rates prompted a 39% MoM increase in rate-and-term refinance volume.

* Year-over-Year purchase lock counts fall: After showing a YoY increase in April, purchase lock counts - a key measure for market health that excludes the impact of home price appreciation (HPA) and volatile refinance activity - have been down for two consecutive months this spring, falling 4% YoY in May and 8% YoY in June.

* Lethargic volume despite jump in refis: Total volume was up 2% over the previous month, an incremental increase driven by a 22% jump in refinance activity[1][BO2]. Purchase volume declined by 1% over the same time period.

* Credit remains high, but varies by locale: While average credit scores remained high across the board at 738, they varied widely among the top 20 metropolitan statistical areas (MSAs) by lock volume. The San Francisco-Oakland-Hayward MSA had the highest average credit score at 757, while Atlanta-Sandy Springs-Roswell, GA, had the lowest.

* Home prices drop for first time this year: The average home purchase price ended its five-month growth streak, dropping $1.5K, from $480.3K to $478.8K. MoM, the average loan amount declined by $300 to $374.2K.

The full June 2024 Market Advantage report provides more detailed findings and additional insights into U.S. mortgage market trends.

About the Market Advantage Report:

Formerly known as the Originations Market Monitor, Optimal Blue issues the Market Advantage mortgage data report each month to provide early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE - the mortgage industry's most widely used product, pricing, and eligibility engine - the Market Advantage provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders' pipelines.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes operate profitably and efficiently so they can fulfill the momentous role of helping American borrowers achieve the dream of homeownership, regardless of market dynamics. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit OptimalBlue.com.

Optimal Blue today released its June 2024 Market Advantage mortgage data report, which revealed a stagnant late-spring housing market as home prices dropped for the first time in 2024 and purchase lock counts fell 8% over the previous year. All mortgage lock figures in this news release have been controlled for fewer market days in June.

Related link: https://www2.optimalblue.com/

Optimal Blue Launches Competitive Data License to Help Lenders Optimize Margins With Competitive Loan Pricing Data

PLANO, Texas /ScoopCloud/ -- Optimal Blue announced the release of Competitive Data License, a collection of key national mortgage pricing data that enables lenders to price products competitively, operate more profitably, and react swiftly to changing market conditions.

Competitive Data License draws upon direct-source loan data from the Optimal Blue PPE, which is used to price and lock over 35% of loans in the United States. The data solution provides lenders with extensive insight into markups, loan-level price adjustments (LLPAs), servicing-released premiums (SRP), concessions, loan officer compensation, base price, and PAR rate. The offering's data set allows for granular benchmarking at various levels - from organization-wide to individual loan officers - enabling lenders to identify areas for improvement, replicate successful strategies, and maintain a competitive edge.

"We often hear from our lenders how difficult it is to make informed pricing decisions given the lack of visibility into detailed market data," said Brennan O'Connell, director of data solutions at Optimal Blue. "Competitive Data License ensures that our PPE customers have full transparency into the granular pricing components needed for a full price trace from buy-side to sell-side - giving Optimal Blue clients a strategic advantage in benchmarking their entire pricing strategy."

Competitive Data License highlights which locks were completed by the lender using the data set, while also offering additional details, such as which loan officer locked the loan. Lenders have the flexibility to feed the raw data from Competitive Data License into their own business intelligence platforms to assess their performance relative to competitors and adjust pricing strategies - such as repricing or hedging optimization - based on market shifts.

Competitive Data License is available exclusively to Optimal Blue PPE users, and those currently using Market Data License for competitive analytics will be upgraded automatically to the more robust Competitive Data License data set. Market Data License will remain available to lenders not using the Optimal Blue PPE.

Optimal Blue will be hosting a webinar on July 10 for those interested in learning more about Competitive Data License.

About Optimal Blue

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes operate profitably and efficiently so they can fulfill the momentous role of helping American borrowers achieve the dream of homeownership, regardless of market dynamics. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between.

To learn more, visit https://www2.optimalblue.com/.

Optimal Blue announced the release of Competitive Data License, a collection of key national mortgage pricing data that enables lenders to price products competitively, operate more profitably, and react swiftly to changing market conditions. Competitive Data License draws upon direct-source loan data from the Optimal Blue PPE, which is used to price and lock over 35% of loans in the United States.

Related link: https://www2.optimalblue.com/

Mortgage Interest Rate Sensitivity Triggers 25% Spike in May Rate-and-Term Refinance Activity

PLANO, Texas /ScoopCloud/ -- Optimal Blue today released its May 2024 Market Advantage mortgage data report, which revealed a 25.6% month-over-month (MoM) spike in rate-and-term mortgage refinances. The spike was a response to a modest drop in the Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming rate, which ended the month at 7.02%.

"The sharp increase in demand for rate-and-term refinances following a dip in rates indicates that homeowners with rates above 7% feel pinched and are sensitive to even modest interest rate movements in the current economic landscape," said Brennan O'Connell, director of data solutions at Optimal Blue. "For context, since Optimal Blue began tracking the 30-year conforming rate as a market index in January 2017, interest rates only exceeded 7.02% on 120 market days. Based on other measures, buyers who locked loans on those days have the highest mortgage rates of the past two decades."

Key findings from the May 2024 Market Advantage report, which are drawn from direct-source mortgage lock data, include:

* Shallow dip in interest rates: The benchmark OBMMI 30-year conforming rate bottomed out on May 15 at 6.875% before ending the month at 7.02%, 22 bps lower than at the close of April. This reprieve in mortgage rates prompted a 25.6% MoM increase in rate-and-term refinance volume.

* Overall volume increase: Total volume rose by 5.3% MoM and 1.8% year-over-year (YoY), driven by a 4.1% increase in MoM purchase lock volume, a 7.2% rise in cash-out refinances, and a substantial 25.6% increase in rate-and-term refinances.

* YoY decline in purchase lock counts: Purchase lock counts, a key market health indicator that controls for home price appreciation and refinance volatility, were down 4% YoY. Despite the decline, May YoY purchase lock counts were stronger than the 7% YoY decline recorded in February, the last month unimpacted by the timing of the Easter holiday.

* Coastal market growth: Major coastal cities saw the highest MoM volume increases, with East Coast cities New York, Boston, and Jacksonville and West Coast cities Riverside-San Bernardino, San Diego, Sacramento, and Portland each seeing volume gains of 13% or greater.

* Stable, high credit quality: Average credit scores remained high, with the purchase borrower score averaging 738.

* Stable loan amounts, rising home prices: MoM, the average loan amount remained flat at $374.5K. MoM, the average home purchase price rose for the fifth consecutive month this year, up $2.4K from $477.9K to $480.3K.

The full May 2024 Market Advantage report provides further detail on these findings and more insights into U.S. mortgage market trends.

View report: https://www2.optimalblue.com/wp-content/uploads/2024/06/OB_MarketAdvantage_May2024_Report.pdf

About the Market Advantage Report:

Formerly known as the Originations Market Monitor, Optimal Blue issues the Market Advantage mortgage data report each month to provide early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE - the mortgage industry's most widely used product, pricing, and eligibility engine - the Market Advantage provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders' pipelines.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue:

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes operate profitably and efficiently so they can fulfill the momentous role of helping American borrowers achieve the dream of homeownership, regardless of market dynamics. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between. To learn more, visit https://OptimalBlue.com/.

Optimal Blue today released its May 2024 Market Advantage mortgage data report, which revealed a 25.6% month-over-month (MoM) spike in rate-and-term mortgage refinances. The spike was a response to a modest drop in the Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming rate, which ended the month at 7.02%.

Related link: https://www2.optimalblue.com/

Optimal Blue Names Joe Tyrrell Chief Executive Officer

PLANO, Texas /ScoopCloud/ -- Optimal Blue today announced the appointment of Joe Tyrrell as CEO. Tyrrell succeeds interim CEO Scott Smith of Optimal Blue's parent company, Constellation Software Inc.

Tyrrell brings over 25 years of experience in the mortgage, finance, and technology industries to Optimal Blue. This includes serving as president of ICE Mortgage Technology, as well as in various leadership roles at Ellie Mae, including chief operating officer, prior to its acquisition in 2020. Most recently, Tyrrell served as the CEO of Medallia, a customer and employee experience company.

"I have always been attracted to companies that make their clients' success their top priority, and that is especially true with Optimal Blue, the clear market leader in secondary marketing technology," said Tyrrell. "For the past year and a half, I have been delivering innovation and real generative AI capabilities to the largest and most trusted consumer, health care, hospitality, financial services, and technology brands in the world, and I am excited to now bring those capabilities to Optimal Blue's lenders and partners in an industry that I love."

Smith will continue his role within Constellation Software, where he serves as president of Andromeda, the portfolio in which Optimal Blue operates. In addition to overseeing the CEO transition, Smith will continue supporting the success of the Optimal Blue business through his position.

"It was a priority to identify the right leader to support our investment in Optimal Blue and the long-term success of the business," said Smith. "We've found that and more with Joe Tyrrell, who is passionate about client relationships and innovation - two tenets that have been core to Optimal Blue's culture throughout its decades as a market leader. Joe's extensive experience in this industry affords him a fundamental understanding of the needs and challenges lenders face and ways innovative technology and real-time data can solve them. Along with the other leaders within the Andromeda portfolio of Constellation Software, I look forward to continuing to support the success of Optimal Blue under Joe's leadership."

About Optimal Blue

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes operate profitably and efficiently so they can fulfill the momentous role of helping American borrowers achieve the dream of homeownership, regardless of market dynamics. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between.

To learn more, visit http://OptimalBlue.com/.

Optimal Blue today announced the appointment of Joe Tyrrell as CEO. Tyrrell succeeds interim CEO Scott Smith of Optimal Blue's parent company, Constellation Software Inc. Tyrrell brings over 25 years of experience in the mortgage, finance, and technology industries to Optimal Blue.

Related link: https://www2.optimalblue.com/

Optimal Blue Announces ‘Optimize Your Advantage’ to Showcase How Its Capital Markets Platform Puts Lenders in Control of Their Margins

PLANO, Texas /ScoopCloud/ -- Optimal Blue announced the launch of its Optimize Your Advantage campaign in advance of the MBA Secondary and Capital Markets Conference. This comprehensive brand initiative highlights the value and innovation the company delivers to clients. Through Optimal Blue's position as the housing industry's only end-to-end capital markets platform, lenders and other market participants have greater control of their profit margins, giving them distinct advantages, regardless of market conditions. In turn, they are better positioned to make housing finance accessible to more American borrowers.

"'Optimize Your Advantage' illustrates how Optimal Blue helps lenders effectively manage and significantly improve their return on investment," said Sara Holtz, chief marketing officer of Optimal Blue. "There are benefits to working with a nimble partner like Optimal Blue that can anticipate and quickly deliver the innovations clients need to operate efficiently and profitably. In turn, these lenders can help more borrowers fulfill the dream of homeownership - a momentous purpose that requires a proven partner with the technology, network, data, and expertise necessary to succeed in dynamic markets. We're incredibly proud of the fact that Optimal Blue is the only provider that delivers on these needs from pricing accuracy to pipeline risk management, and every step in between."

The campaign showcases the interconnectedness of Optimal Blue's ever-growing network. Through an API-first approach, the company bridges critical connections between the primary and secondary mortgage markets to the benefit of the larger industry. This network brings together hundreds of thousands of individual lenders, investors, brokers, and vendors to yield constant value by way of knowledge-sharing and real-time, competitive benchmarking.

Further, Optimal Blue's technology and data offerings form a critical, complete, and scalable capital markets infrastructure - from the time an American borrower looks into homes they can afford in terms of accurate product and pricing options, to when a lender considers originating a mortgage, through rate locking, counterparty oversight, pipeline hedging, securitization and trading, and on through the valuation of mortgage servicing rights and portfolio monitoring for additional lead generation opportunities.

The company was acquired by Constellation Software in September 2023, and this new campaign marks Optimal Blue's continued commitment to the future of mortgage lending and secondary marketing. Through Constellation's independent ownership model, Optimal Blue operates as a distinct entity with access to resources and best practice sharing from its parent company.

"Optimal Blue has been setting the pace of innovation and product delivery in the capital markets space for decades, and a key to that long-term success is our company's ability to continuously innovate and evolve for the market's needs," said Scott Smith, interim CEO of Optimal Blue and president of Andromeda, Constellation Software. "Our clients are the driving motivation behind everything we do, and we're pleased to shine a light on the unique value Optimal Blue brings to their success."

The campaign will include efforts to further enhance Optimal Blue's existing client advocacy program, through which the company solicits client feedback that is used to directly inform innovation. Enhancements to the advocacy program will include additional value-add forums for clients, as well as new brand initiatives to showcase Optimal Blue's value in action through client spotlights.

About Optimal Blue

Optimal Blue effectively bridges the primary and secondary mortgage markets to deliver the industry's only end-to-end capital markets platform. The company helps lenders of all sizes and scopes operate profitably and efficiently so they can fulfill the momentous role of helping American borrowers achieve the dream of homeownership, regardless of market dynamics. Through innovative technology, a network of interconnectivity, rich data insights, and expertise gathered over more than 20 years, Optimal Blue is an experienced partner that allows lenders to optimize their advantage from pricing accuracy to margin protection, and every step in between.

To learn more, visit https://www2.optimalblue.com/.

Optimal Blue announced the launch of its Optimize Your Advantage campaign in advance of the MBA Secondary and Capital Markets Conference. This comprehensive brand initiative highlights the value and innovation the company delivers to clients. Through Optimal Blue's position as the housing industry's only end-to-end capital markets platform, lenders and other market participants have greater control of their profit margins, giving them distinct advantages, regardless of market conditions.

Related link: https://www2.optimalblue.com/

Mortgage Purchase Lock Counts See First YoY Gain Since Fed Rate Hikes Began Two Years Ago

PLANO, Texas /ScoopCloud/ -- Optimal Blue today released its April 2024 Originations Market Monitor report, which reveals the first year-over-year increase in purchase mortgage lock counts since the Federal Reserve initiated rate hikes in March 2022.

"Purchase lock counts are a key market indicator as they control for changes in home prices and more volatile refi activity, so the year-over-year increase in April is a particularly encouraging sign that mortgage production may be turning a corner," said Brennan O'Connell, director of data solutions at Optimal Blue. "While we are cautiously optimistic, May figures will provide further confidence in the positive trend, as April 2024 numbers got a boost from the Easter holiday landing in March this year."

Key findings from the April 2024 Originations Market Monitor report, which are drawn from direct-source mortgage lock data, include:

* Year-over-year lock count growth: April purchase lock counts rose 5% over April 2023, the first increase in annual lock counts in more than two years.

* Spring homebuying drove overall increase in lock volume: Total monthly rate lock volume increased by 8.7% in April, driven by an 11.0% month-over-month increase in purchase lock volume.

* Declining refinance activity: The refinance share of total volume decreased to 12%, tying the low levels seen during the summer of 2023. Rate/term refinance volume fell by 13.7%, and cash-out volume remained flat.

* Rising interest rates: The benchmark Optimal Blue Mortgage Market Indices (OBMMI) observed significant increases across all categories as higher-than-anticipated inflation readings have cooled market expectations for rate cuts in 2024. The 30-year conforming fixed rate rose 51 basis points to finish the month at 7.24%. This figure is 80 basis points higher than one year ago.

* Shifts in loan type popularity: Nonconforming loan products, including jumbo and non-QM loans, increased their market share by 1.85% to 13.7%. Meanwhile, shares for conforming, FHA, and VA loans declined.

* Increasing loan and home purchase prices: The average loan amount increased $7,200 to $374.5K, and the average home purchase price climbed $14,100 to $477.9K.

The full April 2024 Originations Market Monitor report provides further detail on these findings and more insights into U.S. mortgage market trends: https://www2.optimalblue.com/wp-content/uploads/2024/05/OB_OMM_APR2024_Report.pdf

About the OMM Report:

Each month, Optimal Blue issues the Originations Market Monitor report, which provides early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE - the mortgage industry's most widely used product, pricing, and eligibility engine - the Originations Market Monitor provides a view of early-stage origination activity. Unlike self-reported survey data, mortgage lock data is direct-source data that accurately reflects the in-process loans in lenders' pipelines.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue:

Optimal Blue is a market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier products are used by 68% of the top 500 mortgage lenders in the U.S. For more information on Optimal Blue's end-to-end secondary marketing automation, visit OptimalBlue.com.

Optimal Blue today released its April 2024 Originations Market Monitor report, which reveals the first year-over-year increase in purchase mortgage lock counts since the Federal Reserve initiated rate hikes in March 2022.

Related link: https://www2.optimalblue.com/

Optimal Blue Director of Data Solutions Brennan O’Connell Named a 2024 HousingWire Rising Star

PLANO, Texas /ScoopCloud/ -- Optimal Blue today announced that Brennan O'Connell, director of data solutions, has been honored with the 2024 HousingWire Rising Stars award. The award program celebrates emerging leaders in real estate and mortgage who have demonstrated rapid career growth and an ability to lead, achieving remarkable milestones before the age of 40.

"We are incredibly proud of Brennan's accomplishments and the recognition he has received as a 2024 Rising Star," said Optimal Blue interim CEO Scott Smith. "Brennan inspires those around him each day with his passion for sharing Optimal Blue's rich data assets with our customers and beyond. He embodies and directly supports our company's commitment to fostering a more competitive, informed, and successful housing industry."

O'Connell joined Optimal Blue in 2019 with the task of productizing the company's data sets for new markets. Since that time, he has expanded customer profiles to include government entities, hedge funds, universities, think tanks, and research institutions.

Today, O'Connell leads Optimal Blue's strategy, business development, and sales engineering across all data products, including competitive loan pricing, origination activity, and pipeline hedging and trading. He also serves as an advisor for Optimal Blue clients who are building out their analytics capabilities using Optimal Blue's data.

"The most outstanding leaders are forged in times of crisis. As the housing industry navigates the higher-for-longer rate environment, many emerging leaders have come to the surface to guide their companies, teams and clients to a more successful and promising future," said Clayton Collins, CEO of HW Media. "Through Rising Stars, HousingWire has identified these leaders who are making their mark with leadership qualities and innovative ideas. The future will look different, and I'm confident these Rising Stars will play prominent roles in housing's forward evolution."

HousingWire's selection committee chose this year's Rising Stars based on their professional achievements within their organizations, contributions to the overall housing economy, community outreach, client impact and personal success. The full list of 2024 HW Rising Stars award winners can be viewed on the HousingWire website.

About Optimal Blue

Optimal Blue is a market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier products are used by 68% of the top 500 mortgage lenders in the U.S. For more information on Optimal Blue's end-to-end secondary marketing automation, visit OptimalBlue.com.

Optimal Blue today announced that Brennan O'Connell, director of data solutions, has been honored with the 2024 HousingWire Rising Stars award. The award program celebrates emerging leaders in real estate and mortgage who have demonstrated rapid career growth and an ability to lead, achieving remarkable milestones before the age of 40.

Related link: https://www2.optimalblue.com/

Optimal Blue Announces Promotion of Rick Allen to Chief Operating Officer

PLANO, Texas /ScoopCloud/ -- Optimal Blue today announced that it has elevated Rick Allen to chief operating officer (COO). Most recently serving as Optimal Blue's chief administrative officer, Allen brings more than 35 years of experience in the housing industry to his senior leadership role. Throughout his tenure at Optimal Blue, Allen has played an integral role in the enhancement and delivery of products to add exceptional value to the company's clients. In his new role as COO, Allen will provide greater operational oversight across all areas of the company, including opportunities to enhance efficiencies and streamline execution.

"Our clients have long relied on our technology and data to operate profitably and efficiently, and our ability to serve them has always come from our own ability to operate with agility," said Allen. "It's a privilege to step into this role and assume executive oversight of Optimal Blue's operations so we can continue delivering the highest quality products and services to our customers and partners."

Prior to joining Optimal Blue in 2017 as vice president of business strategy, Allen built his decades of experience across both the lending and vendor sides of the housing industry. This included roles in client services and product management at Mortgagebot, as well as a position as vice president of mortgage lending at the company now known as TD Bank.

"Optimal Blue is laser-focused on the most meaningful initiatives that deliver the best value and ROI to clients - especially in dynamic market conditions," said Scott Smith, interim CEO of Optimal Blue and president of Andromeda, Constellation Software Inc. "Rick has been a respected leader at Optimal Blue for many years, and his promotion to COO allows him to lend even more of his expertise across all operational areas and product solutions in ways that underscore our commitment to our customers. This is a true 'win' for our business and clients alike."

About Optimal Blue

Optimal Blue is a market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier products are used by 68% of the top 500 mortgage lenders in the U.S.

For more information on Optimal Blue's end-to-end secondary marketing automation, visit OptimalBlue.com.

Optimal Blue today announced that it has elevated Rick Allen to chief operating officer (COO). Most recently serving as Optimal Blue's chief administrative officer, Allen brings more than 35 years of experience in the housing industry to his senior leadership role. Throughout his tenure at Optimal Blue, Allen has played an integral role in the enhancement and delivery of products to add exceptional value to the company's clients.

Related link: https://www2.optimalblue.com/

Average Homebuyer Credit Score Hits the Highest Mark in Years

PLANO, Texas /ScoopCloud/ -- Today, Optimal Blue released its March 2024 Originations Market Monitor report, which reveals the average homebuyer credit score has reached 737 - an all-time high since the company began tracking this data in January 2018. Despite the potential buyer pool being somewhat limited to borrowers with higher credit, rate lock volume showed steady month-over-month growth of 17% in March as the spring buying season got underway.

Key findings from the March 2024 Originations Market Monitor report, which reflects month-over-month changes in mortgage lock data, include:

* Unprecedented credit scores: March recorded the highest average borrower credit score for purchase loans at 737 since tracking commenced in January 2018. Similarly, in February and March 2024, FHA borrower credit scores reached six-year highs of 677 and 676, respectively. VA borrower credit scores reached their peak since February 2021, and conforming loan borrower credit scores achieved their highest mark since January 2021.

* Spring rate lock activity surge: March saw a notable 17% increase in rate lock volume, driven by a 17% rise in purchase locks. While refinances comprised a small share of lock volume, rate/term activity rose 19% and cash-out activity rose 11%, aided by an improving rate environment.

* Interest rates tick down: The Optimal Blue Mortgage Market Indices (OBMMI) 30-year benchmark rate decreased by 15 bps to 6.74%, signaling an improving rate environment conducive to both purchase and refinance transactions. The OBMMI jumbo index saw the largest rally, dropping 27 bps to 7.07%.

* Year-over-year comparison: Despite strong month-over-month gains, March purchase lock counts were down 24% from the same period in 2023. This year-over-year decline is likely due to the Easter holiday weekend falling in March this year and April last year. April and May figures will be a better indicator of whether the market is turning a corner.

* Market share adjustments: FHA lending saw its fourth straight month-over-month decline in market share, falling 0.72% to capture a 19% share of total lock volume. FHA volume had seen relatively consistent growth from 2021-2023, with market share growing from 9% to a peak of 23% in November 2023 before the recent stretch of declines.

* Loan amounts and prices increase: The average loan amount rose by $8,000 to $367.3K, and the average home purchase price increased $9,700 to $463.8K.

"Driven by rising interest rates and home prices, we're witnessing the highest average homebuyer credit scores in years," said Brennan O'Connell, director of data solutions at Optimal Blue. "This unprecedented level of creditworthiness among purchasers is largely a result of the affordability issues borrowers face in today's housing market, with prospective buyers with lower credit scores waiting on the sidelines until conditions improve. However, it is encouraging to see a strong pool of qualified buyers still actively pursuing homeownership. This trend underscores the resilience of the market and the adaptability of consumers in navigating the current economic landscape."

The full March 2024 Originations Market Monitor report provides further detail on these findings and more insights into U.S. mortgage market trends: https://www2.optimalblue.com/wp-content/uploads/2024/04/OB_OMM_MAR2024_Report.pdf

About the OMM Report:

Each month, Optimal Blue issues the Originations Market Monitor report, which provides early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE - the mortgage industry's most widely used product, pricing, and eligibility engine - the Originations Market Monitor provides a view of early-stage origination activity.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue:

Optimal Blue is a market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier products are used by 68% of the top 500 mortgage lenders in the U.S.

For more information on Optimal Blue's end-to-end secondary marketing automation, visit http://OptimalBlue.com/.

Today, Optimal Blue released its March 2024 Originations Market Monitor report, which reveals the average homebuyer credit score has reached 737 - an all-time high since the company began tracking this data in January 2018. Despite the potential buyer pool being somewhat limited to borrowers with higher credit, rate lock volume showed steady month-over-month growth of 17% in March as the spring buying season got underway.

Related link: https://www2.optimalblue.com/

Mortgage Industry Veteran Sara Holtz Joins Optimal Blue as Chief Marketing Officer

PLANO, Texas /ScoopCloud/ -- Optimal Blue announced today that it has appointed Sara Holtz as chief marketing officer. As a seasoned marketing and communications leader, Holtz brings more than 20 years of career experience, including a decade of driving change in the mortgage industry. As chief marketing officer, Holtz will drive unified marketing and communications strategies to advance Optimal Blue's business priorities and further extend the company's influence.

"As the only comprehensive capital markets solution in the mortgage industry, Optimal Blue helps lenders realize greater profitability and operational efficiency, which plays an essential role in making the dream of homeownership attainable for the American borrower," said Holtz. "It's an honor to join Optimal Blue - a company that's been regarded for its innovation and expertise for decades. I am energized by the opportunity to build on the company's momentum to drive meaningful transformation for Optimal Blue's valued clients and the borrowers they serve."

Holtz joins Optimal Blue from ICE Mortgage Technology, where she most recently served as vice president of demand marketing and communications. In this role, she led a dynamic team focused on generating sales opportunities and engaging industry audiences. Holtz joined ICE with the company's acquisition of Ellie Mae in 2020. During her tenure at Ellie Mae, Holtz helped advance the company's corporate communications strategies, including both internal and external brand narratives.

"Sara is a highly respected professional and her unique blend of experience makes her the perfect addition to Optimal Blue's senior leadership team," says Scott Smith, interim CEO of Optimal Blue. "She has a track record of proven leadership, and she will play an integral role as we continue to expand our position as the leader in mortgage secondary marketing technology."

Holtz was honored as a HousingWire Marketing Leader in 2023, a prestigious award that celebrates the most creative and influential minds of the housing economy.

About Optimal Blue:

Optimal Blue is a market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier products are used by 68% of the top 500 mortgage lenders in the U.S.

For more information on Optimal Blue's end-to-end secondary marketing automation, visit OptimalBlue.com.

Optimal Blue announced today that it has appointed Sara Holtz as chief marketing officer. As a seasoned marketing and communications leader, Holtz brings more than 20 years of career experience, including a decade of driving change in the mortgage industry. As chief marketing officer, Holtz will drive unified marketing and communications strategies to advance Optimal Blue's business priorities and further extend the company's influence.

Related link: https://www2.optimalblue.com/

Spring Buying Season Kicks Off With an Uptick in Purchase Applications Despite Climbing Interest Rates

PLANO, Texas /ScoopCloud/ -- Today, Optimal Blue released its February 2024 Originations Market Monitor report, which reveals that the spring homebuying season has kicked off with a jump in monthly purchase mortgage locks. The seasonal spike in purchase locks propelled a net increase in origination activity, even as higher interest rates led to steep declines in mortgage refinances.

Key findings from the February 2024 Originations Market Monitor report, which reflects month-over-month changes in mortgage lock data, show:

* Lock activity up despite steep decline in refinances: Rate lock volumes saw a 5% increase due to a notable 8.3% increase in purchase activity. The rise in purchase activity outpaced the decrease in refinancing activity, which fell by 22.5% for rate/term refinances and 3.1% for cash-out refinances.

* Purchase market nearing its floor: Purchase lock counts, which control for changing home prices, rose 7%, a significant growth compared to the 2% increase in the same period last year during a similar uptick in interest rates. The 7% year-over-year decline in lock activity was the smallest such drop since the Fed began hiking interest rates in March 2022.

* Interest rate trend reverses: The benchmark Optimal Blue Mortgage Market Indices (OBMMI) observed an end to three consecutive months of rate declines - the result of strong economic readings, which significantly lowered market expectations of a near-term rate cut. The OBMMI 30-year conforming rate index rose 36 bps to 6.89%, FHA rose 28 bps to 6.66%, VA rose 41 bps to 6.50%, and jumbo rose 37 bps to 7.35%.

* Non-conforming products see gains: Non-conforming loan products, including jumbo and non-QM loans, claimed an additional 183 basis points of market share, ending the month with 11% of the total volume. Meanwhile, conforming loans maintained a steady 57%, with slight decreases in FHA and VA loans.

* ARMs become slightly more popular: The rate increase nudged the share of ARM loans up, though they still account for only 6% of total production volume. The current economic scenario, particularly the inverted yield curve, will likely constrain further demand growth for these products.

* Credit quality and loan amounts continue upward trend: Credit quality continued to improve across all loan products, except VA loans, which held steady. The average loan amount increased from $355.6K to $359.3K, while the average home purchase price climbed from $444.9K to $454.1K.

"As the spring buying season commenced, we saw a resurgence in purchase locks, despite the rise in interest rates," said Brennan O'Connell, director of data solutions at Optimal Blue. "Although lock counts were down on a year-over-year basis, the rate of decline is decelerating and suggests we may be nearing a floor for purchase lending in the current rate environment."

View the full February 2024 Originations Market Monitor report for more detail: https://www2.optimalblue.com/wp-content/uploads/2024/03/OB_OMM_FEB2024_Report.pdf

About the OMM Report:

Each month, Optimal Blue issues the Originations Market Monitor report, which provides early insight into U.S. mortgage trends. Leveraging lender rate lock data from the Optimal Blue PPE - the mortgage industry's most widely used product, pricing, and eligibility engine - the Originations Market Monitor provides a view of early-stage origination activity.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue

Optimal Blue is a market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier products are used by 68% of the top 500 mortgage lenders in the U.S.

For more information on Optimal Blue's end-to-end secondary marketing automation, visit https://OptimalBlue.com/.

Today, Optimal Blue released its February 2024 Originations Market Monitor report, which reveals that the spring homebuying season has kicked off with a jump in monthly purchase mortgage locks. The seasonal spike in purchase locks propelled a net increase in origination activity, even as higher interest rates led to steep declines in mortgage refinances.

Related link: https://www2.optimalblue.com/

Optimal Blue’s Mike Schommer Honored as a 2024 HousingWire Finance Leader

PLANO, Texas /ScoopCloud/ -- Today, Optimal Blue announced its vice president of finance, Mike Schommer, has been honored as a 2024 HousingWire Finance Leader. The award program celebrates senior finance executives who have exhibited exceptional leadership in corporate finance, capital markets, and accounting within the mortgage and real estate sectors.

Schommer is a veteran financial professional with over 30 years of experience operating in the housing finance industry. His significant contributions to Optimal Blue include leading the company's spin-off from Intercontinental Exchange (ICE) and constructing a best-in-class financial planning and analysis function. Schommer's proficiency in managing third-party audit relationships and his skill in engaging with the investment community have set him apart as a leader in his field. A valued member of Optimal Blue's executive team, Schommer is relied on as a steady source of advice and counsel.

"Mike Schommer's impact on Optimal Blue cannot be overstated. His strategic financial management, coupled with his unwavering dedication to our team and values, has been a driving force behind our success," said Optimal Blue interim CEO Scott Smith. "This recognition by HousingWire is a testament to his hard work, expertise and leadership. We are incredibly proud to have Mike as part of our executive team and are excited to see his continued influence on our growth and innovation."

"Even the best business operators, innovators and entrepreneurs have no chance at winning or growing without creative, diligent and strategic financial management and execution," said Clayton Collins, CEO of HW Media. "The executives recognized in the 2024 HousingWire Finance Leaders program represent the strategic finance leaders that unlock and empower progress. They navigate capital markets, execute strategic growth initiatives and facilitate accretive M&A deals. The 2024 Finance Leaders exemplify excellence."

About Optimal Blue:

Optimal Blue is a market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier products are used by 68% of the top 500 mortgage lenders in the U.S. For more information on Optimal Blue's end-to-end secondary marketing automation, visit OptimalBlue.com.

Today, Optimal Blue announced its vice president of finance, Mike Schommer, has been honored as a 2024 HousingWire Finance Leader. The award program celebrates senior finance executives who have exhibited exceptional leadership in corporate finance, capital markets, and accounting within the mortgage and real estate sectors.

Related link: https://www2.optimalblue.com/

Optimal Blue Originations Market Monitor: Lock Volume Rises 36% Month Over Month in January, Falling Rates and Slowing Decline in Purchase Counts May Signal Lending Relief in 2024

PLANO, Texas /ScoopCloud/ -- Today, Optimal Blue announced the release of its Originations Market Monitor report, looking at mortgage origination data through January month-end. Leveraging daily rate lock data from the Optimal Blue PPE - the industry's most widely used product, pricing, and eligibility engine - the Originations Market Monitor provides a comprehensive and timely view into origination activity.

"The new year kicked off with continued rate relief and a 36% month-over-month gain in total lock volume, driven by a seasonal 38% increase in purchase lock volume," said Brennan O'Connell, director of data solutions, Optimal Blue. "We also saw the smallest year-over-year decline in purchase lock counts since May 2022, which may foreshadow a stabilizing market and friendlier lending environment in 2024."

In addition to the month-over-month climb in purchase lock volume, cash-out and rate/term refinance volumes rose 30% and 20%, respectively. The Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming rate dropped 4 basis points (bps) in January to finish the month at 6.53% after a mid-month peak at 6.7%. FHA and VA rates also fell in January, dropping 4 bps and 3 bps, respectively, while jumbo rates moved in the other direction with an 11-bps increase since year-end.

Mortgage rates fell despite a month-over-month 15-bps increase in the 10-year Treasury yield in January, leading to a 19-bps narrowing of the mortgage-to-Treasury spread. At approximately 250 bps, the January spread reached levels unseen since mid-2022. While still elevated relative to historical averages, the spread has narrowed significantly since eclipsing 300 bps on multiple occasions in 2023.

Conforming products gained market share to start the year, rising 72 bps to account for 57.3% of total volume. Non-comforming products - including jumbo and non-QM - rose 27 bps to make up 9.7% of total volume. Ginnie Mae-eligible products moved inversely, however, with the FHA share dropping 87 bps and the VA share falling 13 bps, each representing 20.7% and 11.7% of total volume, respectively. The share of adjustable-rate mortgage (ARM) products stayed consistent at just above 5% of total volume. Improving rate conditions and an inverted yield curve have limited the demand for ARM loans.

The rise in lock volume coincided with a January climb in average credit scores across all products and loan purposes. The average loan amount also rose, increasing from $349.5K to $355.6K. Finally, after six consecutive months of decline, the average home purchase price rebounded, jumping from $435.9K to $444.9K.

Each month's Originations Market Monitor provides high-level origination metrics for the U.S. and the top 20 metropolitan statistical areas (MSAs) by share of total origination volume. View the Optimal Blue Originations Market Monitor report for more detail on January activity.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue:

Optimal Blue is a market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier products are used by 68% of the top 500 mortgage lenders in the U.S. For more information on Optimal Blue's end-to-end secondary marketing automation, visit OptimalBlue.com.

Today, Optimal Blue announced the release of its Originations Market Monitor report, looking at mortgage origination data through January month-end. Leveraging daily rate lock data from the Optimal Blue PPE - the industry's most widely used product, pricing, and eligibility engine - the Originations Market Monitor provides a comprehensive and timely view into origination activity.

Related link: https://www2.optimalblue.com/

Optimal Blue Clinches 2024 HousingWire Tech100 Mortgage Award

PLANO, Texas /ScoopCloud/ -- Today, Optimal Blue announced its selection by HousingWire as a Tech100 Mortgage award winner. Now in its 12th year, HousingWire's Tech100 award program spotlights the most innovative and impactful tech organizations in housing.

"We are honored to be recognized by HousingWire for our end-to-end capital markets platform, which connects hundreds of thousands of individual lenders, investors, brokers and vendors across the primary and secondary mortgage markets," said Scott Smith, interim CEO at Optimal Blue. "Optimal Blue is continually investing in product innovation that enables our customers to operate more nimbly, efficiently and profitably, while at the same time growing our bench of experienced industry advisors and services staff."

Optimal Blue is an undisputed leader in mortgage secondary marketing technology, facilitating more than $1.1 trillion in mortgage locking and trading transactions annually. Its technology and data solutions are relied on by thousands of lenders and brokers, and hundreds of investors, as well as government agencies, think tanks, and others. The company's solutions are used by 68% of the top 500 mortgage lenders in the U.S.

Optimal Blue continues to invest in its market-leading position with a focus on enhanced user experience, cloud-first and cloud-native technology, world-class mobile solutions, and premier workflow, rules, and compliance technology.

"The technology capabilities and solutions that this year's Tech100 winning organizations have developed are an absolute testament to the relentless innovation within the real estate and mortgage technology landscape," HW Media Editor-in-Chief Sarah Wheeler said. "These past few years have been transformative for the industry and these honorees are continuing to bring long-awaited solutions to the challenges that mortgage and real estate professionals have struggled with for decades. Congratulations to all the deserving winners for their outstanding contributions to our ever-evolving industry."

About Optimal Blue:

Optimal Blue is a market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier products are used by 68% of the top 500 mortgage lenders in the U.S.

For more information on Optimal Blue's end-to-end secondary marketing automation, visit http://www.optimalblue.com/.

Today, Optimal Blue announced its selection by HousingWire as a Tech100 Mortgage award winner. Now in its 12th year, HousingWire's Tech100 award program spotlights the most innovative and impactful tech organizations in housing.

Related link: https://www2.optimalblue.com/

Optimal Blue PPE Now Available in Native Mobile App for Android and iOS, Gives Loan Officers ‘Pricing in Their Pocket’ With Full Product and Search Capabilities

PLANO, Texas /ScoopCloud/ -- Today, Optimal Blue announced releases related to its publicly listed, native mobile app for the Optimal Blue PPE - the industry's most widely used product, pricing, and eligibility engine. The releases consist of a new mobile app for Android, as well as enhancements to the company's mobile offering for iOS.

"Loan officers no longer sit at their desks all day, so Optimal Blue made it a priority to put 'pricing in their pocket' with full product and search capabilities from the convenience of a mobile device," said Kevin Foley, director of product management, Optimal Blue. "With just a few taps, a loan officer can identify the best product, rate, and price for their borrower without the constraint of being in an office. This helps them operate more efficiently and competitively, while also delivering a better experience to prospective homebuyers. Plus, it's a truly native mobile app experience, built specifically for the mobile devices loan officers are using."

By giving loan officers the flexibility to access scenario pricing from any location, the Optimal Blue PPE (OB) Mobile app assists with timely and productive borrower conversations. OB Mobile allows users to price scenarios and save favorites to a dashboard for quick access. With a single tap, these scenarios can then be refreshed to show the best product, rate, and price, as well as any interest rate movement on a given day. The app displays the full array of pricing inputs and granularity currently available on the web version of the Optimal Blue PPE, including custom fields. All eligible products and rates are presented, including any adjustments, notes, and advisories. Ineligible products are also displayed, along with a reason for ineligibility.

In addition to an all-new app for Android, the app for iOS now includes pricing analysis from the Optimal Blue Mortgage Market Indices (OBMMI). Calculated from actual locked rates with consumers across approximately 42% of all mortgage transactions nationwide, the OBMMI includes multiple mortgage pricing indices developed around the most popular mortgage products and specific borrower attributes. The inclusion of this market data adds new value to a broader range of users. Any loan officer or person - regardless of whether they are an Optimal Blue client - can access OBMMI pricing analysis via the app, with PPE functionality reserved for client login.

"As the public continues paying close attention to rate movement in 2024, we're pleased to make our interactive OBMMI pricing analysis available in a native iOS app anyone can download," Foley added. "OBMMI access will be added to the Android app later this year."

OB Mobile is publicly listed for both Android and iOS and available for download today.

About Optimal Blue:

Optimal Blue is the market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier product, pricing and eligibility engine - the Optimal Blue PPE - is used by 64% of the top 500 mortgage lenders in the U.S.

For more information on Optimal Blue's end-to-end secondary marketing automation, visit https://www2.optimalblue.com/.

X/Twitter: @OptimalBlue #Mortgage #HousingFinance #MBS #SecondaryMarkets

Today, Optimal Blue announced releases related to its publicly listed, native mobile app for the Optimal Blue PPE - the industry's most widely used product, pricing, and eligibility engine. The releases consist of a new mobile app for Android, as well as enhancements to the company's mobile offering for iOS.

Related link: https://www2.optimalblue.com/

Optimal Blue Originations Market Monitor: December Brought Significant Growth in Rate/Term Refinance Volume as Falling Rates Created Favorable Tailwinds

PLANO, Texas /ScoopCloud/ -- Today, Optimal Blue announced the release of its Originations Market Monitor report, looking at mortgage origination data through December month-end. Leveraging daily rate lock data from the Optimal Blue PPE - the industry's most widely used product, pricing, and eligibility engine - the Originations Market Monitor provides a comprehensive and timely view into origination activity.

"Mortgage rates continued to fall in December, with the Fed delivering welcomed commentary suggesting rates may have peaked with cuts on the horizon in 2024," said Brennan O'Connell, data solutions manager, Optimal Blue. "The sharp drop in rates provided tailwinds that caused rate/term refinance volume to rise a notable 43% month over month. Despite cash-out volume declining 9%, the total refinance share of locks rose to 19% in December - the highest level since April 2022. However, the improving rate environment had little impact on purchase lending, where lock volume fell 23% in December, traditionally the slowest month for homebuyer activity."

The growth in rate/term volume was largely driven by a material uptick in VA Interest Rate Reduction Refinance Loans (IRRRLs). IRRRL volume hit its highest level since January 2022, and the total refinance share of VA volume rose to nearly 30%. As a result, VA volume saw the highest market share gain in December, rising 137 bps to finish the month at 11.8% of total volume. FHA refinance volume also ticked up in December, despite FHA total volume dropping 105 bps of market share to 21.5% of total volume. The GSE-eligible share rose 36 bps to 56.6% and nonconforming volume - inclusive of jumbo and non-QM - dropped 72 bps to 9.4%. The adjustable-rate mortgage (ARM) share of locks continued to fall, dropping to 5.2% of total volume, indicating further fading of consumer interest in the product.

The Optimal Blue Mortgage Market Indices (OBMMI) 30-year conforming rate dropped 54 bps to finish the month at 6.57%. The OBMMI for jumbo, FHA, and VA loans fell 74 bps, 49 bps, and 67 bps, respectively.

"The spread between the 30-year conforming rate and the 10-year Treasury yield remained essentially flat in December as government bonds and mortgages benefitted equally from the positive fixed-income outlook," O'Connell continued. "Looking ahead to 2024, the mortgage-to-Treasury spread remains elevated from historic norms at roughly 275 bps, suggesting there may be further room for compression and reduction in mortgage rates."

The rise in rate/term refinance volume coincided with a drop of 8 points in the average credit score as borrowers with lower credit scores jumped on the opportunity to lower their monthly payments with VA and FHA refinances. Purchase and cash-out refinance credit scores ticked higher, however. The average loan amount rose to $349.5K from $347.4K, while the average purchase price saw another - albeit smaller - decline, falling from $438.3K to $435.9K.

Each month's Originations Market Monitor provides high-level origination metrics for the U.S. and the top 20 MSAs by share of total origination volume. View the Optimal Blue Originations Market Monitor report for more detail on December activity.

Nothing herein shall be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.

About Optimal Blue

Optimal Blue is the market leader in mortgage secondary marketing technology. The company facilitates transactions among mortgage market participants through its Marketplace Platform, actionable data, and technology vendor connections. The platform supports a range of functions for originators and investors to automate and optimize core processes related to product, pricing, and eligibility, hedge analytics, MSR valuation, loan trading, social media compliance, and counterparty oversight. The company's premier product, pricing and eligibility engine - the Optimal Blue PPE - is used by 64% of the top 500 mortgage lenders in the U.S.

For more information on Optimal Blue's end-to-end secondary marketing automation, visit http://OptimalBlue.com/.

RELATED LINKS:

https://www2.optimalblue.com/wp-content/uploads/2024/01/OB_OMM_DEC2023_Report.pdf

Today, Optimal Blue announced the release of its Originations Market Monitor report, looking at mortgage origination data through December month-end. Leveraging daily rate lock data from the Optimal Blue PPE - the industry's most widely used product, pricing, and eligibility engine - the Originations Market Monitor provides a comprehensive and timely view into origination activity.

Related link: https://www2.optimalblue.com/