Today’s customer demands convenient digital solutions and prompt service. The mortgage loan origination systems are still paper-based to a large extent. These processes can only meet heightened customer expectations with advanced technology and mortgage process automation for Mortgage LOS. The mortgage application process is complex and involves a lot of tasks that loan officers must complete manually in the absence of a reliable Mortgage LOS platform. Even using imaging and tracking technology is prone to human error because of manual insertion of documents. A sophisticated Mortgage Loan Origination System allows customized solutions to ensure that the data entered is valid and information is at your fingertips. inflooens is the best Mortgage LOS platform that makes data readily available and is easy-to-use, making the process error-free.
A robust mortgage LOS will help in making the application process streamlined, glitch-free, compliant, and lead to shorter processing time. According to a recent survey by FannieMae, business process streamlining and consumer-facing technologies remain the top business priority for lenders. This ultimately means higher customer satisfaction. You can learn more about the key features of the best mortgage LOS in our previous blog.
Figure 1 - Lender's top priorities for 2020 Image: https://www.fanniemae.com/media/34111/display
Each industry has it’s own pain points, as does the mortgage industry. The aim is to use technology to your benefit and overcome these bottlenecks. In today’s blog, we will look at how the best mortgage LOS will help in addressing industry pain points.
Mortgage Industry Pain Points and Mortgage Loan Origination System
To provide better service to customers and increase profitability, it is essential to streamline workflows and address the key pain points that the mortgage industry is facing. This is especially true in the case of Mortgage Loan Origination System because a major part of the paper-work and compliance are handled during loan origination. Let’s look at the 5 major pain points of the mortgage industry.
1. Paperwork and Documentation for Mortgage LOSLending requires an immense amount of paperwork for compliance and also to make sure that loans are not fraudulent. Inherently, a loan origination system involves the gathering of documents, and many times going back and forth to the customer to get correct borrower information. The hassles only multiply when this process is manual.
2. Manual Data Entry in Mortgage LOSUsing disparate systems means that staff needs to enter the same data manually multiple times. This results in errors and a loss of resources and time spent in correction. Eliminating manual data entry and encouraging online application process as a part of Mortgage LOS should be a top priority for lenders.
3. Slow Turn-aroundNeedless to say, manual and repetitive processes marred with errors, result in slow turn-around times. According to a survey by McKinsey & Company, speed and transperancy is key to customer satisfaction.
Figure 2 - Areas mortgage providers should prioritize Image: https://www.mckinsey.com/industries/financial-services/our-insights/banking-matters/competing-on-customer-experience-in-us-mortgage#
4. Loan PricingLoan Pricing is a critical part of a profitable loan origination system. Lenders must walk the fine line between competitive pricing and managing risks. Financial institutions need to provide loan officers with information at their fingertips to be able to negotiate with borrowers and make informed pricing decisions.
5. Managing Customer RelationshipsMany lenders still rely on dated systems like excel sheets to track and manage their customers. In this case, it is common for loan officers to miss out on important analytics and even appointments. Operational Analytics need to form an integral part of the loan origination system.
Best Mortgage Loan Origination System to the rescue
Technology has a big role to play in addressing the pain points of the mortgage industry. With help of advanced analytics and the right Mortgage LOS platform, you can successfully overcome bottlenecks facing your existing loan origination system. We have discussed evaluating the right Mortgage LOS in our previous blog.
1. Digital Loan Origination System and MortgagesA Mortgage LOS platform allows the collection and verification of all documents online. This greatly reduces paperwork and eliminates the need for troubling the borrower repeatedly for information. inflooens is the best mortgage LOS platform that lets you collect, store, and verify all information documents online, making your Mortgage LOS truly digital.
2. Automated Data EntrySmart Mortgage LOS platforms enable lenders to automatically enter data using technologies like OCR. This increases the accuracy of data collection and reduces data redundancy. inflooens mortgage LOS platform allows data syncing and uses OCR to help you save time, effort, and money across the entire loan lifecycle.
3. Enhanced Turn-around TimesOnline application and document submission combined with automated data entry save a lot of time for lenders enabling them to shave off days, and sometimes even weeks, from their loan origination process. This frees up valuable time for resources to be dedicated to tasks that generate business value. You can deliver accelerated turn-around times with the advanced and easy-to-use features of inflooens Mortgage LOS.
4. Profitable PricingA reliable and robust Mortgage Loan Origination System will enable lenders to analyze and provide current and accurate information to officers on the field. With data analytics and business insights, lenders can make informed decisions regarding loan pricing. Not only that, the loan pricing information is transmitted to loan officers across markets with a single click. inflooens mortgage loan origination system offers these features which provide intuitive and predictive analytics for you to offer the most profitable loan pricing to borrowers.
5. Customer RelationshipsCustomer satisfaction is at the top of the list for a successful mortgage loan origination system. Automation can help in activities like appointment scheduling and follow-ups to make sure that you never miss a client call. It can also engage customers by offering guided selling. inflooens is the best mortgage LOS that provides the smartest mortgage CRM in the market.
Technology is helping to enhance processes, generate business value, and increase customer satisfaction in the Loan Origination System. The best mortgage LOS should enable lenders to address the key pain points that the industry is facing. This will result in streamlined processes and higher profitability. Mortgage LOS platforms like inflooens enable lenders to realise this vision.