How Brokers Make 75bps+ More per Loan with Pylon
Even in 2026, wholesale lenders still originate mortgages using the 20th-century ”mortgage factory” model. This model gets its name from workflows that resemble a factory assembly line, including manual processes and hand-offs and the sequencing of a dozen or more stitched-together vendor solutions. These inefficiencies inevitably lead to higher costs, which is the single biggest reason wholesalers mark up their rates by 75-200bps. When this markup gets passed to brokers, they’re faced with a trade-off: trim margins to sustain volume, or throttle volume to protect profitability.
As we explored in our previous post, this trade-off isn’t inevitable. Brokers are discovering they can now bypass the wholesale model entirely and replace it with Pylon’s mortgage rails. This approach eliminates the wholesale markup, giving brokers direct access to Wall Street rates while automating the manual processes that slow down origination and hamper loan officer workflows.
The result is an entirely new economic model for brokers. Instead of earning fixed compensation on someone else’s loan, brokers can control pricing, capture gain-on-sale economics, and benefit from automated fulfillment.
Brokers considering the shift to Pylon’s mortgage rails often ask us what it looks like in practice. How does a loan move through a software-driven system? How do broker workflows change? And how do they maximize the value they get from Pylon?
Here’s how brokers are using Pylon’s platform in practice:
1. Borrower begins branded application on broker’s website
Pylon automatically analyzes income, asset, and liability data from the application, validating it against takeout investor guidelines in real time. Every product and investor scenario is evaluated up front to deliver a precise pre-approval, eliminating manual AUS guessing and checking.
2. Pylon instantly generates tasks and conditions
Borrower tasks are automatically generated and organized by objective, such as locking a rate. Each task aligns to investor guidelines and qualification criteria, allowing borrowers to complete requirements independently while loan officers step in to structure. (Loan officers can still complete tasks on borrowers’ behalf if they prefer.) Real-time status updates show the borrower and LO what’s complete and what’s outstanding.
3. Pylon autonomously structures the loan for the best borrower outcomes
Pylon’s software evaluates every possible permutation of DTI, LTV, and down payment across live rate sheets, expertly navigating LLPAs to reveal structures that could elude even the most experienced LOs. The system recommends the three best structures to eliminate manual guesswork: lowest rate, lowest monthly payment, and lowest out-of-pocket amount. Once the preferred structure is selected, Pylon updates the system and locks the rate instantly, automatically generating disclosures. No more exporting 3.4 files and manually uploading them to wholesale lender portals.
4. Pylon begins order-outs in the background
Pylon initiates order-outs automatically in the background, managing key tasks like title, appraisal, and verification requests. Brokers can attach their own contacts, title partners, and fee data, which are seamlessly incorporated into pricing and structures.
5. Software executes underwriting with expert oversight
Underwriting is driven by software, applying investor guidelines with complete consistency. Each loan is evaluated against the same standards, eliminating subjective interpretations, queue time, and variability between reviewers. When edge cases arise, a seasoned underwriter from our technical oversight team steps in to ensure accurate, consistent outcomes.
6. Compliance is evaluated continuously
Compliance monitoring happens continuously rather than at discrete checkpoints. Disclosure requirements get tracked automatically, and regulatory changes are implemented instantly across all active files rather than through training updates to operations teams. Pylon reps and warrants every loan into the capital markets.
7. Loan is funded
On average, loans originated through Pylon close in 18 days. Brokers control pricing, own the borrower experience, and capture economics that would otherwise have gone to a wholesaler. This is the future of origination: software executing the complete mortgage workflow with minimal manual intervention.
The power of a single, integrated platform
Pylon’s mortgage rails replace brokers’ existing tech stack, enabling brokers to consolidate multiple point solutions into a single, integrated platform. Brokers can incorporate Pylon into existing brokerage operations in days rather than months. There’s no wholesaler required, no change to broker licensing, and no need to hire a technology team or restructure operations. In some cases, Pylon may automate the work of existing operations staff, enabling their focus to be shifted elsewhere.
Elements is Pylon’s borrower experience solution, built to automate and streamline the front end of the mortgage journey. Elements delivers a seamless, on-brand application flow with pre-built components for information capture, document upload, and progress tracking. Launch fast with our prebuilt user experience, or fully customize it on Pylon’s API-first platform.
Command Center is Pylon’s modern alternative to a loan origination system. Built for human-in-the-loop automation, it provides intelligent support tooling that automates and streamlines key workflows, keeping files on track and empowering loan officers to focus on relationships, not paperwork. Command Center autonomously delivers structures that are tailored to each borrower’s priorities, maximizing pull-through and borrower outcomes.
Decisioning delivers fast, accurate credit decisions without underwriter bottlenecks, subjectivity, or manual review cycles. Pylon’s Decisioning engine evaluates income, assets, credit, liabilities, and employment data in real time to deliver compliant approvals quickly, helping brokers originate more loans and deliver better borrower experiences.
Capital gives brokers direct access to Wall Street’s most competitive capital, with at-cost, 100% advance warehousing built in. Get direct Wall Street rates from top institutions, complete transparency on execution, and total control over gain-on-sale. Pylon rates never have any markup.
Compliance monitors regulatory requirements continuously and generates required disclosures automatically. Changes to TRID, ECOA, and other regulations are implemented instantly across all active loans. Pylon reps and warrants the entire file into the capital markets.
Our platform works out of the box for brokers who want to get started immediately, while providing API access for brokers who want to build custom integrations and borrower experiences. In both cases, brokers remain independent, keeping their existing license, brand, referral relationships, and operational autonomy. Pylon replaces the wholesaler and the fragmented software stack, not the broker business model.
The advent of the new mortgage rails is creating a divide in the brokerage industry. The brokers adopting this new paradigm now are capturing significantly higher margins while simultaneously delivering better rates to borrowers. With rates 75-200bps lower than wholesale pricing, brokers using Pylon can choose to compete aggressively on price, preserve higher margins, or strike a balance that drives both volume and profitability.
The brokers already switching from wholesalers to mortgage rails are establishing a competitive position that’s difficult for peers to match. Brokers can significantly exceed borrower expectations when they’re able to close loans in 18 days, deliver lightning-fast approvals, and undercut competitors’ rates. As these advantages compound through referrals, repeat business, and reputation, early adopters can create momentum that’s hard for competitors to overcome.
The question for brokers isn’t whether mortgage rails will reshape the industry; it’s whether they’ll be there to play a role in defining the brokerage model of tomorrow.
Brokers can experience the Pylon difference firsthand by booking a demo.
