Loan origination software (LOS) is key to not only processing loans efficiently but also processing more loans in the same amount of time. In a warm housing market, borrowers have many options when it comes to choosing a lender to secure their financing. Mortgage operations can’t afford to let anything get in the way of executing loans with absolute precision.
But obstacles can stand in the way of creating an efficient loan origination process. The right LOS can overcome the roadblocks that annoy mortgage professionals, irritate borrowers, and prevent lenders from processing enough loans to improve the bottom line.
Here are some common ways that high-quality software can power your team:
Reduce Human Error
No matter how automated any system is, humans are still involved in the process and occasionally make mistakes because, well, they’re human. Someone might enter a typo into the software, or incorrectly hear how the borrower spells something, or forget a step in the process. When these mistakes happen, at best, the process slows down, and at worst, compliance is at risk.
Even with the most diligent professionals, human error may be unavoidable, but a good LOS flags problems in real time so the team can quickly correct mistakes. Moreover, software should offer strong audit trails to show where the error happened and simple functionality to fix it with minimal hassle.
Open Borrower Bottlenecks
Borrowers can make mistakes during the loan origination process. They might not respond to action items or may be unaware of how to provide information and proper documentation. Loan professionals waste time trying to solve these bottlenecks, and borrowers can become stressed, thus slowing down the process even more.
Removing as much of the complexity from the process as possible not only puts borrowers at ease but also breaks through the bottlenecks they unwittingly create. An LOS that offers borrower-friendly features, including mobile access, also benefits lenders who can originate (and profit from) more loans with less effort.
Eliminate Paperwork … So Much Paperwork
The amount of forms that must be filled out for a mortgage is immense and inevitable—that will never change. Unfortunately, paperwork has a tendency to be either illegible, inaccurate, omitted, or lost. Even when every document is correct and accounted for, you’ll still have to deal with an unwieldy folder of papers that is inconvenient for you and your customers.
Electronic document storage, eClosings, and mobile borrower interviews eliminate much of the paper trail that normally accompanies a loan origination. Borrowers don’t have to fill out repetitive forms because the data is easily and automatically imported into other documents. If a mistake is made, it can be quickly fixed, and the fix can be applied everywhere the data was incorrect (rather than manually corrected on each paper document). Moreover, you’ll never have to worry that you don’t have the right document on hand because it will be at your fingertips within the LOS.
Create More Flexibility
The mortgage industry landscape is constantly changing, whether it’s the introduction of new loan products, updated federal regulations, or variations in the housing market. Lenders’ operations also change in growth, organizational structure, or adoption of new processes and procedures. Outdated and/or inflexible systems are unable to roll with the changes. You might be stuck with how the solution was configured in the past, and any workaround inevitably wastes time and risks noncompliance.
The best software is configured to your workflows and properly follows compliance rules. It’s also fully customizable to the things team members need to effectively run their operations. A great LOS can scale as your requirements change and is backed by top-notch customer service and IT support so that updates, both technical and functional, are made when needed.
Provide Ease of Use
The last obstacle that slows down the loan process is difficulty using your tools and applications. Nothing’s more frustrating—to you and your borrowers—than the waiting game to complete steps in the origination process, which shouldn’t be a hassle. Moreover, if your company’s integrations don’t get along with each other, you’re looking at time wasted (and potentially fewer loans originated) as you try to work in multiple, disparate systems.
Comprehensive software gives you the features and functionality you need to successfully and efficiently complete the loan process. Convenience and ease of use are emphasized without sacrificing precision, compliance, or performance. Additionally, a quality LOS seamlessly integrates with a wide range of third-party applications; accessing an outside solution is as simple as clicking on a pull-down menu. Such a solution is valuable for your team—and brings joy to your borrowers as you help them get into new homes.