Lenders, mortgage brokers, and the entire mortgage industry fixate on their customers’ happiness—and rightly so. Borrowers’ satisfaction with and perceptions of the mortgage process shape their decisions. Interactions with loan officers, the customer service team, and the lender’s loan technology can determine whether borrowers are ultimately satisfied with their lending experience.
Though the borrower’s happiness is a primary focus, as a lender, you should also consider your satisfaction with your LOS. If your team is constantly dealing with inefficiencies with the software, not only will bottom-line results miss the mark, but the team’s daily workload might feel generally miserable. Nothing sucks the joy out of helping future homeowners more than dealing with software that doesn’t perform in the ways you need it to.
Loan origination software should be an asset, not a detriment, to achieving business success and customer satisfaction. A crucial first step for finding a system that meets—or exceeds—your team’s expectations is knowing when to walk away from an underperforming LOS.
Ask yourself the following questions to determine if it’s time to ditch your loan origination system:
Is the Loan Process Taking Too Long?
Efficiency is a must in mortgage lending. For borrowers eager to get into their new homes, the time needed to process the mortgage can seem like forever; a slow LOS shouldn’t add to the agony. Moreover, inefficient software means fewer processed applications and fewer customers—and a negative impact to your bottom-line.
Lenders increasingly choose cloud-based loan origination software that digitizes the entire process. The best solutions offer automatic pricing, e-closing, and the ability for borrowers to complete the interview process on a mobile device. Borrowers love the convenience, and lenders love the efficiency.
Is Compliance a Pain?
The Consumer Financial Protection Bureau (CFPB) and other regulators are strictly enforcing fair lending, disclosure, and security rules. Lenders must be even more diligent, leaving no stone unturned or box unchecked. Ensuring that your processes are compliant can take time, especially if loan origination software treats compliance like a necessary evil instead of an integral part of the process. If your LOS is a compliance hindrance, switch to one that simplifies the process and keeps you out of the crosshairs of the CFPB.
Is Your LOS a Lone Wolf?
“Silo” is an IT term referencing a solution that exists in itself and struggles to integrate with other systems. It’s important that your LOS isn’t too siloed from the rest of your organization. Loan origination software that cannot work with the other solutions your organization uses to operate is frustrating to no end; it wastes your time, slows down your processes, and exposes you to unnecessary risk.
A high-quality LOS works seamlessly with other systems, offering a rich feature set that prevents you from needing additional systems and providing preferred vendors whose solutions will integrate with the loan origination software for tasks not otherwise covered.
Is Your LOS Too Rigid?
It’s critical that your LOS is flexible and adaptable to scale as your business evolves and grows. An LOS that is too rigid limits your team’s options when a unique request comes your way. An inflexible LOS also isn’t easily updated; with evolving compliance guidelines, new loan products, and other industry changes, a lack of scalability cuts into efficiency and accuracy.
Loan origination software should be customizable from its initial implementation to whenever users need to adjust rules or workflows. Such an LOS should also be easily scalable so it can be expanded as desired.
Do You Simply Dislike Your LOS?
Beyond specific shortcomings with your loan origination software, if it is simply obnoxious to use, you might be better off with a new solution. An LOS that is difficult to use, unreliable, and has poor support from its provider ultimately works against you and your borrowers.
The loan process shouldn’t be a dreaded responsibility that you and your team endure, so don’t settle for substandard software. Choose a feature-rich LOS from an established, industry-leading provider that puts its clients first. The sooner you make a bold move to a better system, the more time you will save, and the happier you and your borrowers will be.
