Don Lange, an industry veteran with a distinguished career as CEO of Weyerhauser Mortgage in Los Angeles, has been recruited to be chairman and CEO of OptiFI.
An individual's propensity to pre-pay a loan, or "Prepayment Speed", is one of the most significant drivers of the profitability of a loan.Traditional methods used to determine Prepayment Speed have been limited to "pool" or "loan level" approaches.These methods depend solely upon macro-economic factors and loan type characteristics to draw general conclusions about aggregate loan pre- payment propensities.These approaches, however, ignore the unique characteristics of the borrower that can be extremely useful in determining their likely Prepay Speed.The technology developed by Marketswitch
, which has been licensed exclusively to OptiFI
, merges household level behavioral analysis with financial security pricing technology to unlock the value of understanding the impact of unique customer attributes on Prepayment Speed.With this understanding, loan organizations will be able to increase their loan level knowledge of valuation prior to funding a loan, thus making more fair and profitable loan decisions.
"We intend to create an industry standard that will transform prepayment risk into business opportunity," said Lange
."We expect that just as FICO scores are used for more than 3 out of 4 mortgage applications in the United States, OptiFI
Scores will be just as common.And, by increasing the portfolio management efficiency, OptiFI
will benefit the consumer, as well as the lender." Lange recently served as president of the Mortgage Banker's Association of America and is also a director for Pedestal, a B2B mortgage exchange, and MERS, the electronic registration system for mortgages.In addition, Lange chaired the MBA Technology Committee while an officer with the MBAA.
About Fair, Isaac
is a global provider of customer analytics and decision technology.Widely recognized for its pioneering work in credit scoring, Fair, Isaac
revolutionized the way lending decisions are made.Today the company helps clients in multiple industries increase the value of customer relationships.Fair, Isaac
has made the Forbes list of the top 200 U.S. small companies eight times in the last nine years.