Optimal Blue Introduces New Features for Its Generative AI Assistant

The launch of generative AI capabilities by Optimal Blue is intended to assist lenders in maximising profits on each loan transaction. By means of direct interaction with its wide-ranging clientele, the enterprise has created artificial intelligence solutions customised for use cases unique to the secondary market, therefore tackling the pragmatic obstacles encountered by mortgage lenders. Three brand-new AI assistants that are incorporated into Optimal Blue’s CompassEdge loan trading and hedging platform are part of the inaugural release of these capabilities.

“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.”

Seever Sulaiman, Chief Technology Officer of Optimal Blue, who has spearheaded 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.”

Optimal Blue has introduced three AI-powered assistants in its CompassEdge platform, utilising its vast experience:

Profitability Assistant: Using generative AI, this assistant provides concise summaries of the major factors influencing profitability, including bulk AOT, loan sales, fallout, and new locks. It is intended for use by chief financial officers (CFOs) and other executive team members. The C-suite and subordinate teams can communicate more openly thanks to these summaries.

Projections Assistant: Designed for executives in the capital markets, this assistant leverages AI to forecast, in real time, the effects of many factors, including originations, fallout, and loan sales, on the risk profile of a hedged mortgage pipeline. It provides fine-grained predictions for position management by automating intricate computations.

Trade Assistant: This assistant lowers the amount of guessing involved in choosing a hedge and is aimed for leaders of a lender’s trading desk. In accordance with the lender’s hedging strategy, it recommends the best combinations of sells, purchases, rolls, and swaps to optimize effectiveness and minimize transaction costs.

“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.”

CompassEdge users may now use all three AI assistants for no extra cost, demonstrating Optimal Blue’s dedication to providing genuine AI solutions that increase profitability without adding to customer costs.