LLPAs are either paid upfront or baked into the interest rate. They vary based on factors including borrower credit score, down payment and property type. The Biden administration attempted to revamp the LLPA matrix in 2023, which would have permanently reduced or eliminated fees for first-time homebuyers and low- to moderate-income borrowers. The changes also included fees for borrowers with lower credit scores and higher down payments.
The lawsuit centers on two Optimal Blue tools launched in 2019, Competitive Analytics and Competitive Data License, which require lenders to share an unprecedented quantity and quality of non-public, competitively sensitive, granular, real-time data covering every component of their residential Mortgage Pricing and profit margins. Plaintiffs allege this data-sharing arrangement the price of admission to this cartel allowed lenders to coordinate pricing rather than compete, effectively inflating rates and margins.