Optimal
Blue
—
a
provider
of
secondary
market
solutions
and
actionable
data
services
—
plans
to
solidify
its
position
as
an
end-to-end
solution
from
pricing
a
loan
to
hedging,
trading
and
selling
a
loan,
Scott
Smith,
interim
CEO
of
Optimal
Blue,
shared
in
an
interview
following

Constellation
Software’s
acquisition
of
the
firm.

There
will
be
no
one-stop
shop
for
mortgage
tech,
which
in
turn
makes
having
an
open
platform
of
integration
all
the
more
important
in
a
highly
competitive
environment,
Smith
added. 

“Open
platforms
of
integration
are
critical.
Optimal
Blue
integrates
with
all
the
loan
origination
systems
(LOSs).
We
have
lots
of
integration
points,
I
think
we
have
about
70
partners
that
use
our
application
programming
interfaces
(APIs)
as
well,”
said
Smith.

Smith,
who
also
serves
as
co-president
of
Romulus
portfolio
at
Perseus
Group
of
Constellation
Software,
noted
the
importance
of
partnership
with
the
largest
mortgage
tech
player
in
the
market
—

Intercontinental
Exchange
(ICE)
to
win
over
customers.

Read
on
to
learn
more
about
Optimal
Blue’s
long-term
strategies
and
how
Constellation
Software
plans
to
get
ahead
of
competition
in
the
mortgage
tech
space. 

This
interview
was
condensed
and
lightly
edited
for
clarity.

Connie
Kim:

Optimal
Blue
provides
data
across
a
large
spectrum
–
including
originator
data,
market
data
and
investor
data.
What
are
lenders
in
search
of
when
it
comes
to
data
and
how
is
Optimal
Blue
fulfilling
those
needs
for
lenders
and
investors?

Scott
Smith:
We
provide
a
ton
of
data
and
being
a
new
owner,
I
probably
won’t
even
do
it
justice
how
much
we
actually
provide.
The
monthly
originations
market
report
uses
rate
lock
data
from
the
Optimal
Blue
PPE
to
give
the
market
a
view
into
origination
activity.
Our
Optimal
Blue
Mortgage
Market
Indices
provides
an
interactive
analysis
of
actual
locked
rates.
Our
customers
have
access
to
the
product
data,
so
they’re
seeing
in
real
time
what’s
going
on
in
the
market
whether
that’s
on
the
PPE
side
or
on
the
hedging
and
trading
side.

Kim:

Since
Optimal
Blue
began
as
an
information
services
business,
it
has
expanded
to
offerings
in
the
secondary
market
and
a
whole
loan
trading
platform.
What
is
the
vision
for
the
company
going
forward?

Smith:
When
you
think
about
the
product
itself
with
the
PPE
product,
our
hedging,
trading
products,
Compass
Analytics
and
CompassEdge
product,
I
think
we’re
the
only
real
end-to-end
solution
from
pricing
a
loan
to
hedging,
trading
and
selling
a
loan.
We’ll
see
more
work
that
continues
to
solidify
that
position.

Kim:

What
kind
of
tech
are
lenders
interested
in
acquiring?
I
often
hear
lenders
talk
about
the
difficulties
of
implementing
add-on
products
with
ICE
becoming
the
largest
tech
provider
in
the
industry.

Smith:
I
think
integration
is
key.
I
don’t
think
there’s
a
one-stop
shop
for
your
tech.
Open
platforms
of
integration
are
critical.
Optimal
Blue
integrates
with
all
the
loan
origination
systems
(LOSs).
We
have
lots
of
integration
points,
I
think
we
have
about
70
partners
that
use
our
application
programming
interfaces
(APIs)
as
well.
So
I
think
an
ongoing
open
platform
is
critical.

I
genuinely
don’t
think
there’s
ever
been
a
place
where
it’s
just
one
provider
supplies
for
everybody.
If
you
have
the
LOS
side
of
the
business,
you
have
the
product
and
pricing
engine
side
of
the
business,
hedging,
trading,
servicing
and
so
on.
From
our
perspective,
the
integration
side
is
pretty
key.
You’re
going
to
use
the
tools
and
we’re
going
to
make
sure
our
platforms
are
open
and
able
to
integrate.

Kim:

You
currently
serve
as
co-president
of
Romulus
portfolio
at
Perseus
Group
of
Constellation
Software
as
well.

Intercontinental
Exchange
(ICE)
is
a
major
competitor
in
the
mortgage
tech
space.
How
is
Constellation
preparing
to
get
ahead?

Smith:
When
we
get
into
the
market
we’d
love
to
be
the
strongest
player
in
the
market.
We’re
quite
happy
with
what
we
own.
Right
now
directly
in
my
purview,
there
are
five
businesses
in
the
Constellation
market
stack.
Optimal
Blue,

Dark
Matter
Technologies,
Mortgage
Builder,


ReverseVision,
which
is
a
reverse
mortgage
LOS
and
a
document
storage
business
called

Axacore.
So
we
think
we
can
bring
a
lot
of
those
assets
together.

We
look
at
the
customer
base,
and
we
say,
‘what
makes
sense
for
Constellation
to
invest?’
We
define
that
based
on
what
the
customers
want.
So
Optimal
Blue
and
Dark
Matter
Technologies
work
together
today.
But
Optimal
Blue
also
works
with
ICE’s
Encompass.
So
we’re
partners
with
ICE.
We
can
both
be
competitive
in
some
spaces
but
also
be
an
open
platform
and
be
cooperative. 

Kim:

Are
more


acquisitions

in
the
cards
for
Constellation?

Smith:
I
have
nothing
to
announce
right
now
but
at
Constellation,
we
are
serial
acquirers.
So
we
own
about
1000
software
companies
and
we’re
constantly
in
the
market
to
buy
software.
I
expect
more
acquisitions
will
come
as
it’s
sort
of
core
to
what
we
do
as
well.