LOS should ideally integrate with a lender’s existing point-of-sale (POS) and mortgage servicing software, allowing information to flow seamlessly between the lender and borrower. This capability allows the parties to share loan documents like credit
Mortgage lenders routinely use software to originate their loans, which can improve efficiency and save money. However, the large number of loan origination solutions currently on the market make the selection process challenging. While most loan origination software (LOS) share many of the same features, some of them serve to distinguish the best solutions from the others. These features include comprehensive vendor solutions, borrower communication hubs, and flexible pipeline management.
LOS should ideally integrate with a lender’s existing point-of-sale (POS) and mortgage servicing software, allowing information to flow seamlessly between the lender and borrower. This capability allows the parties to share loan documents like credit information and loan plans. An LOS that’s an end-to-end solution is thus able to handle the entire mortgage process from the initial application to the final payoff.
Regular communication with borrowers is essential for ensuring a fast, easy and transparent mortgage process. An LOS with an effective communication hub allows borrowers to continually monitor the loan application process from the same portal, instead of using separate portals with their own logins. Borrowers can also use this feature to apply for a mortgage, view the lender’s disclosures and submit their reporting documentation.
A loan application is often complicated by the number of participants it requires. An LOS that automates the pipeline management process facilitates an application’s movement between these parties, from originator to closer. Solutions with this capability typically use status codes to ensure an application doesn’t move to the next stage until it's ready. The best LOSs should also automatically send notifications of status changes to users, ensuring they remain up-to-date on the application’s status. LOSs should also allow users to customize the criteria for sending the application to its next destination, further improving the pipeline’s efficiency.