3 Best Loan Origination Software with Buyers Guide

Allegro Lending Suite

Three module design Allows operators &management personnel Easily move between screens and loan types No wasted motion Training time significantly reduced Deliver a reduction in processing time Faster customer response Accurate and Secure

Clustdoc

Best document collection Productivity web app for Mortgage professionals Request a list of supporting files from clients Approves or denies documents Share received files with stakeholders Effortless Efficient Secure Helpful for  Mortgage brokers Real estate agents 

Encompass

Empowers lenders & investors Engage home buyers Efficiently originate close sell & purchase loans Maximize ROI across business Single system of record Delivers true digital mortgage experience to loan transaction & customer type Cloud-based mortgage platform 

Loan Origination Software

Loan Origination Software is a tool that assists in mortgage loan originators (MLOs) for managing and automating the different stages of the loan-service cycle, which includes loan processing, document verification, credit approval, and loan sanctioning. This solution comes with built-in components for risk assessment and regulatory compliance, that help in improving the efficiency of MLOs.

Advantages of Loan Origination Software

Automated underwriting: Loan origination software is good for automating the underwriting process with the help of custom risk analysis algorithms and loan approval rules. This decreases the requirement for manual calculation and increases decision-making at the credit approval stage.

Increases efficiency and decrease costs: This software offers a self-service portal for customers to act during certain tasks on their own. This increases efficiency and decreases costs for MLOs due to decreased administrative workload.

Real-time reporting: This software provides the ability to monitor the loan origination process in real time as end-to-end. It assists users track each step of the loan-service cycle, that fosters transparency across an organization.

Features of Loan Origination Software

Document management: Uploading, storing, and sharing all documents like loan applications, income reports, in a centralized location, making it easier for everyone involved to access information.

Loan processing: Collecting all information and preparing documents required to sanction loan requests.

Audit trail: Tracking changes and viewing date/time records through the entire loan-servicing cycle.

Compliance management: Tracking and managing non-adherence to policies that can be regulatory and organizational.

Customer management: Capturing customer information and interacting for analysis and improving customer experience.

Online application: Allowing customers for submission of loan requests by filling out online application forms.

Pricing engine: Determining and generating loan pricing scenarios for borrowers.

Price of Loan Origination Software

Most products in this market are priced on a per month basis, and can be divided into three pricing tiers based on their starting price. A premium product is priced higher and has additional features like automatic backups, electronic signatures and email and phone support.

 Considerations while Buying Loan Origination Software

Level of integration: Loan origination software needs to interact with other systems for importing and exporting data to fulfill specific lending requirements. Ensure asking the vendor about integration with organizations like document, credit bureaus, and imaging software, audit systems and vehicle valuation systems, and risk.

Data security standards: While almost whole of the enterprise applications these days are vulnerable to cyber threats, financial tools are particularly susceptible which makes it paramount to inquire about the security measures put in place by software sellers to safeguard against cyber threats. You may also require to meet certain regulatory requirements like the Financial Services Modernization Act or Sarbanes-Oxley Act.

Loan Origination Software Trends

AI-driven automation is enhancing the loan origination process: The bedrock of the lending procedure has always been estimating borrowers’ creditworthiness. Recently, assessing the key metric has expanded beyond traditional parameters like income and credit scores. Today, the emphasis is on giving a leverage to an applicant’s full digital footprint which even includes social media, for identifying the likelihood of defaulting on a loan. This provides artificial intelligence and adjacent technologies like machine learning an edge over human beings. The market is witnessing the evolution of a new breed of tech solutions which has a usage of the tools for improving the loan origination process.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More