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Lowering Origination Costs and Increasing Pull-Through: Insights from the Optimal Blue Summit
In today’s mortgage landscape, lenders are under pressure to lower origination costs, increase efficiency, and improve pull-through rates. At this year’s Optimal Blue Summit, industry leaders—including Joey McDuffee, VP of Sales and Marketing at Blue Sage Solutions—discussed how the Loan Origination System (LOS) plays a pivotal role in streamlining operations, leveraging data, and engaging borrowers to drive profitability.
The LOS as the Hub for Efficiency and Growth
One of the biggest challenges in mortgage origination is data silos and inefficient handoffs between loan officers, underwriting, secondary marketing, and closing teams. A modern LOS should serve as an integrated hub, seamlessly connecting the point-of-sale (POS), LOS, and secondary marketing functions to improve data flow and eliminate manual bottlenecks.
Joey McDuffee emphasized the importance of an API-first approach, noting that a unified digital lending platform ensures data accuracy and removes inconsistencies between systems. Instead of piecing together disparate tools, lenders need a single, holistic LOS solution that drives automation, compliance, and operational efficiency
“Having an API-first approach gives us the ability to integrate other technologies. But in the Blue Sage world, our CEO always says, ‘Two plus two is four. It’s not 3.98, it’s not 4.02.’ Having one holistic solution avoids all of those issues with data exchange.” – Joey McDuffee, Blue Sage Solutions
Leveraging Data and Automation to Reduce Costs
Another major takeaway from the panel was the critical role of data analytics in optimizing the loan manufacturing process. Lenders need real-time insights to identify bottlenecks, prevent fallout, and enhance decision-making.
Additionally, automation is no longer optional—it’s a necessity. Strategic automation should be used to handle repetitive, rules-based tasks, allowing loan officers and underwriting teams to focus on high-value, borrower-centric activities.
Key areas where automation can drive cost savings:
✔ Automated loan conditions to reduce manual processing time
✔ Pre-built compliance checks to prevent regulatory error
✔ Data-driven decision-making for optimized pull-through rates
Engaging Borrowers for Higher Pull-Through Rates
McDuffee and other panelists agreed that borrower engagement is one of the biggest levers for improving pull-through rates. Many lenders still rely on reactive communication, leaving borrowers in the dark about loan status and next steps.
A modern LOS should include:
✔ Self-service borrower portals with real-time updates
✔ Atomated notifications to reduce back-and-forth emails
✔ Mobile-friendly loan tracking for a frictionless experience
The goal is to keep borrowers engaged, informed, and less likely to abandon the process.
Why LOS + Market Leading PPE Integrations Matter
Pull-through rates also have a direct impact on secondary market strategies. When lenders lack visibility into loan commitment trends and borrower behaviors, fallout becomes harder to manage. Seamless LOS and PPE (Product Pricing Engine) integration allows lenders to hedge risk, minimize fluctuations, and optimize loan sales.
“Fallout from a secondary perspective can be okay, as long as it’s not jumping all over the place. You can have an 80% pull-through one month and a 20% the next—that’s impossible to manage.” – Drew Shin Wolf, Optimal Blue
The Takeaway: A Smarter LOS Leads to Stronger Profitability
The modern mortgage industry demands a fully integrated, data-driven approach to loan origination. Lenders that embrace automation, borrower engagement, and seamless LOS-PPE integration will lower costs, increase efficiency, and maximize pull-through rates.
At Blue Sage Solutions, we’re committed to helping lenders optimize their operations through a truly digital, API-driven LOS. Ready to see how a modern LOS can drive real results for your business?
Let’s talk! Contact us today to explore how Blue Sage Solutions can help you drive profitability and efficiency.
