It is not uncommon for lenders to be looking for a new loan origination system for a number of reasons. Perhaps they built a home-grown system, but it isn’t up to the task of taking their business to the next level. It is also possible that they are using an outdated system that prevents them from operating efficiently and costs them money as well.
Whenever lenders are looking to improve their business’ operations, they should always be on the lookout for ways to do so and today many find that solution with BankPoint. As a result, their team is freed up to focus on more important aspects of the business (such as building RELATIONSHIPS with clients and customers) instead of reviewing new technology solutions to automate processes or increase efficiency.
There are so many options available, you are guaranteed to find the right loan origination platform. Choosing a new origination platform is daunting…considering any new big technology upgrade can be downright terrifying.
To assist you in your LOS hunt, here are some tips.
Consider online applications:
A mobile-friendly portal that can be configured to fit the lender’s needs is essential in today’s market, where customers and clients can submit applications and loan documents, as well as check the status of their loans. The portal should integrate seamlessly with the loan management system, so additional data entry is not necessary.
How is the borrower’s portal?
Your customers should be able to interact with you from their cell phone or tablet in a way that is usually more convenient for them. When your customers can communicate with you from their mobile device and upload (take pictures!) stipulations, you will stand out from the competition.
Is there a paperless workflow?
Going paperless can save the environment, streamline internal communications, and give your team more time to serve customers.
How good is the decision engine?
The LOS may not be viable if the decision engine cannot handle complex calculations or support complex underwriting scorecards.
What kind of integrations are offered?
Since the LOS is one part of a multi-step process, it should be able to seamlessly integrate with the other systems in place such as the loan management/servicing software and vendor integrations. The transition of data from originations to servicing should not require manual entry. Integrating with third-party vendors should be simple and clean with the ability to access the data in a useful way. In some industries, vendor integrations are imperative since they provide additional data nearly necessary to make a credit decision.
How painful is the implementation process?
If a lender doesn’t have a dedicated IT staff to manage the implementation of a loan origination system, this question is even more important in the LOS decision process. The best way to ensure the LOS system is configured correctly for your business processes is to find a vendor that will help you along the way.
Is the system secure?
It is best to not compromise on security when it comes to a technology system in this day and age.
