How do I choose the best mortgage loan origination software?
Important LOS features include comprehensive vendor solutions, borrower communication hubs, and flexible pipeline management. Read on for other key differentiators between mortgage LOS solutions.
The large number of loan origination software (LOS) solutions on the market can make the selection process challenging for mortgage lenders. While there is little difference in the features offered by these programs, some LOS solutions do a superior job of making their features user-friendly and compatible, and fully integrable with other lending office software. Important LOS features include comprehensive vendor solutions, borrower communication hubs, and flexible pipeline management.
Ideally, LOS should integrate with a lender's existing point-of-sale and mortgage-servicing software. A fully integrated software platform will allow information to flow seamlessly between the lender and borrower, enabling the parties to share loan documents such as credit information and loan plans. An LOS should offer an end-to-end solution that is capable of handling the mortgage-fulfillment process from the initial application to the final payoff.
Regular communication with borrowers is essential to ensure a fast, easy and transparent mortgage process. An LOS with an effective communication hub allows a borrower to monitor the loan application process from the same portal used by the lender, instead of having to create a separate portal and log in. Borrowers also can use this feature to apply for a mortgage, view the lender's disclosures, and submit the requested documentation.
An LOS that automates the pipeline management process facilitates an application's movement among the many parties who review an application, from the originator to the closer. Solutions with this capability typically use status codes to ensure that applications do not move from one stage to another until they are ready. The best LOS solutions should automatically send notifications of status changes to users, ensuring that they remain up-to-date on their applications' status. LOS also should permit some customization of the user criteria for moving an application to its next destination, further improving the pipeline's efficiency.
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