With the quick deployment of COVID vaccination programs, markets are hopeful of accelerated economic recovery in the coming days. Taking this scenario into account, Fannie Mae expects purchase mortgage originations to rise to $1.8 trillion in 2021. With experts expecting a strong year for the mortgage market, mortgage lenders need to have the best Loan Origination System in place.
Image 1: Housing Forecast in 2021 Image Source: https://www.fanniemae.com/media/37951/display
The Best Mortgage Loan Origination System has to be intuitive and have mortgage industry intelligence. We have previously discussed how the best LOS addresses the industry pain points. In this blog, we will discuss whether mortgage lenders have the best Loan origination System.
Loan Origination Process supported by Loan Origination System
Loan Origination System (LOS) supports end-to-end loan processes from lead to close.
Image 2: Loan Origination Process
The monitoring of real-time business activities by Loan Origination System is essential for lending organizations. It is streamlining the mortgage lifecycle with technological advancements in the mortgage industry. Loan Origination Systems are automating the mortgage lifecycle with their end-to-end operations. The global origination software market is estimated to grow at a CAGR of 14.7% by 2029. This growth is according to the forecast in the Straits Research report of May 2020.
Image 3: Global Loan Origination Software market
The influencing factors for choosing the right Mortgage LOS was discussed previously by us. Let’s look at what makes the best Mortgage Loan Origination System
Checklist for the Best Mortgage Loan Origination System
There are many Loan Origination Systems available for lender organizations in the market. It is hard to select the best Loan Origination System that complements an organization's lending ecosystem. Here are the criteria that make the best Loan Origination System.
Innovative and flexible technologyA Loan Origination System platform with innovative technology that enhances Lender' products is a must for mortgage lenders. It needs to have Microservices and APIs incorporated into the system to quickly introduce any new product or services in the market. Artificial Intelligence (AI) is automating the manual processes and reducing the origination costs.
Web-based and integrated LOSIt is essential to have a SaaS-based Loan Origination System than an on-premise software installed from a CD. Having internet-based software makes it easier to use, without the hassle of updates and configuration issues. It also saves time and cost to maintain the web-based Loan Origination System. Moreover, the configuration of LOS should involve easy integration with third-party software and Plug-ins. An integrated LOS provides for a seamless lending operation.
Customizable LOSThe customization of Mortgage LOS depends on a lending business's needs. Lenders can benefit by customizing the LOS that will reduce cost, time, and location constraints. Customization will bring improvement in processes, increase operational efficiency, and smoothen the lending ecosystem. With Virtual chatbots or Robo-advisers being a part of the customization process, lenders can experience superior customer satisfaction. LOS should provide end-to-end lending, which allows the completion of the entire lending process for both borrowers and mortgage lenders.
Safe, secure, and user-friendlyThe LOS should be intuitive enough to be easily operated by users. It should improve the efficiency of the lending process. Data security is of paramount importance in a good Loan Origination System. To prevent any data breaches, the best Mortgage Loan Origination System has the capability to store the data securely.
Automated credit risk analysisThe Loan Origination System needs to be designed in such a way that it can check the creditworthiness of borrowers. Some borrowers may not have a credit history the Loan Origination System should track other financial behavior such as rent repayment, student loan payment, etc. By having an insight into the young borrowers, Mortgage lenders can increase their customer base by up to 20 percent.
Additional features for the Best Mortgage Origination System
In addition to the above criteria for selecting the best Loan Origination System, Mortgage Lenders need to look for the Mortgage Loan Origination System that meets the requirements of the business’ growth.
Quick deployment and implementation of LOS at an affordable priceQuick deployment is one of the requirements of any mortgage lender organization. Several LOS vendors are competing to provide Loan Origination Systems that are affordable and are specific to the mortgage industry requirements. Inflooens’ integrated Loan Origination System is the best in the mortgage industry with scalable and super-fast solutions.
Regulatory compliance supportLenders’ compliance requirements need to be addressed by an efficient LOS. Mortgage lenders need to comply with federal regulations and check for any mortgage frauds or violations. The Loan Origination System has to have online dashboards and ad-hoc reporting to monitor and generate proof for audits. It needs to be seamlessly connected to external data sources to support documentation for the funding process.
Investing in the right Mortgage Loan Origination System is vital for mortgage lenders. LOS with comprehensive capabilities, from point-of-sale to closing loans, enables the lenders to transform the mortgage industry. A cloud-based Mortgage Loan Origination System allows businesses to streamline the loan application process and improve customer experience. If you are looking for a lending ecosystem that can streamline your lending process, Inflooens’ LOS is the one for you.