LoanPASS Acquires PMI Rate Pro to Enhance Mortgage Technology Integration

Written by:

Steve Marcinuk

Date:

05 Jun 2025

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The mortgage technology landscape is shifting toward integration and collaboration, and one recent acquisition exemplifies that trend. In a move that unites complementary tools aimed at improving the lending process, LoanPASS has acquired PMI Rate Pro, a platform known for simplifying the pricing of private mortgage insurance.

“The industry is moving toward collaborative partnerships rather than isolated solutions. LoanPASS excels at partnering with other mortgage technology solutions,” says Nomi Smith, founder of PMI Rate Pro.

The acquisition tackles a long-standing inefficiency in traditional lending workflows: the manual, time-consuming task of quoting PMI for borrowers who put down less than 20 percent on a home. By combining platforms, LoanPASS aims to streamline this process, offering a more seamless experience for lenders and borrowers alike.

From Mongolia to Mortgage Tech Innovation

The story behind PMI Rate Pro begins with Nomi Smith’s journey from Mongolia to the United States. “I came to the United States in 2007 to get my MBA degree,” Smith explains. After graduation, she started as a bank teller and eventually moved into the mortgage industry, where she identified a significant pain point.

“I kept getting this persistent thought that there should be better, transparent ways to help home buyers,” Smith recalls. “Private mortgage insurance stood out to me as a particular problem. If you put less than 20% down, you have to pay for PMI as a home buyer. But home buyers don’t get the chance to shop for this – only the mortgage lender does, and it takes the lender upwards of 30 minutes to compare options.”

This inefficiency inspired Smith to create a solution. “What we built is essentially a comparison tool for PMI – like Kayak for mortgage insurance. You enter the home buyer’s information once and get side-by-side comparisons from all six private mortgage insurance providers in the United States.”

Initially launched as a web application to solve her own pain point as a mortgage professional, Smith quickly realized a more integrated approach was needed. “Lenders don’t want to exit their major systems to enter information separately. We needed to integrate within their existing workflows,” she explains. This insight led to the development of an API that standardized connections to all six PMI providers, making it possible to integrate with various mortgage software solutions.

A Natural Partnership

The relationship between PMI Rate Pro and LoanPASS began three years ago when they first explored integration possibilities. Michael Lewis, President of LoanPASS, explains how the acquisition came about: “We approached Nomi with the opportunity to integrate, and she suggested, ‘How about I offer the idea of you guys just buying me or buying PMI Rate Pro.’ That wasn’t something we were pursuing, but when presented with the opportunity, we had to consider it seriously.”

The technological alignment between the companies made the acquisition particularly attractive. Smith notes, “There are many legacy platforms in the mortgage industry, and LoanPASS is more future-ready with their flexibility and modern technologies. When I built PMI Rate Pro, that’s what I had in mind – how to build technology that’s more forward-looking.”

Strategic Allocation: A Key Differentiator

What makes the combined offering particularly powerful is PMI Rate Pro’s unique allocation feature, which Lewis describes as operating in a “blue ocean” with little direct competition.

“The feature that makes PMI Rate Pro stand out is their allocation capability,” Lewis explains. “Lenders have the ability to set up an administrative panel to say, ‘I may be approved with all six MI providers, but I want to allocate my business and spread it across all the MI providers based on specific criteria.'”

This goes beyond simply choosing the cheapest option. “For many lenders, it’s strategic in nature,” Lewis continues. “An MI provider might offer unique benefits based on certain volume of business, so lenders want to target that business to them to maintain the most beneficial relationship.”

This configurability aligns perfectly with LoanPASS’s core philosophy. “That is what LoanPASS is all about – providing configurability that gives our lenders the ability to market new portfolio-type bespoke products without vendor involvement,” says Lewis. “By combining for MI and giving them the ability to strategically allocate their MI business as well, we’ve created a synergistic win-win.”

Benefits for Conventional Lenders

The acquisition particularly benefits lenders focused on conforming loans, where private mortgage insurance plays a crucial role.

“Those customers that primarily do conforming business rely heavily on private mortgage insurance,” Lewis explains. “Having the opportunity to combine private mortgage insurance as part of the overall pricing of the loan product makes an all-in price more accurate upfront, showing exactly what they can offer for a given product and rate based on a borrower’s unique situation.”

The Future: Collaboration Over Competition

Both Smith and Lewis emphasize that their shared vision extends beyond just combining technologies – it’s about fostering a collaborative approach to solving industry challenges.

“I believe the industry is evolving toward collaborative partnerships,” Smith says. “LoanPASS excels at partnering with other mortgage technology solutions. I look forward to growing and nurturing that approach, continuing to improve solutions for lenders and ultimately for home buyers.”

Lewis echoes this sentiment: “If you try to do everything yourself, you end up competing against everybody. We believe the real synergy comes from partnering to solve existing problems in the space, and that’s where significant improvements will happen.”

As for Smith’s role in the combined company, she’s enthusiastic about the opportunities ahead. “The team has been asking me, ‘What do you want to do? Where would you like to contribute?’ I’m excited to learn the LoanPASS technology thoroughly, participate in customer calls, conduct demos, and help with growth.”

Lewis adds that Smith brings “a unique perspective, a fresh set of eyes, and valuable skills” to the team. “She is well-respected among the MI providers. She’s knowledgeable, proactive, collaborative, and team-oriented. We’re excited about all the ways she can add value to help grow both LoanPASS and PMI Rate Pro.”