Unlocking the value in mortgage pricing

Today's mortgage lenders face a myriad of challenges. There are liquidity concerns, credit and operational risks to consider, as well as the underlying profitability of the business model. Our experience has shown that consumer pricing generally has one of the largest impacts on profits and the success of the business model.

In order to be successful in today's competitive market, you must have good competitive intelligence, sound data, detailed pricing theories and models, and both short-term strategies and long-term profitability models all driving price decisions. You should also have a wide-range of opportunities from quick-win solutions to long-term strategic initiatives that enhance loan pricing processes. Is your pricing model designed for today's challenges? We can help you improve your strategy.

How PwC can help you:

At PwC, we have dedicated pricing professionals who specialize in mortgage lending products. We work with lenders on defining and executing on their pricing strategy, developing their vision and prioritizing their goals.

We also work with clients to provide an assessment of how they compare relative to their peers in regards to our pricing framework. Our innovative framework focuses on the following five critical areas: Pricing governance and risk management, pricing models and processes, market intelligence, management reporting, and execution. Our professionals can help you:
  • Identify pricing opportunities and provide innovative solutions

  • Reconcile expected gain-on-sale margins versus their actual gain-on-sale and attribute the causes to operational or market variances.

  • Implement industry changing pricing models utilizing concepts such as price elasticity of demand, revenue optimization, and scorecard techniques to drive results to the bottom line.