Differentiating a Good Loan Origination Software From An Inferior Variety

Loan origination software processes all the steps of decision making right up to the closing process of a mortgage. A lending institution using advanced loan origination software may reap several benefits, which a faulty program may not provide. Here are some pointers, which may help distinguish between good and deficient loan origination software.

Manual and Automated Interface

A superior software program presents a seamless interface between the manual and automated workflows. The program automates each step of the loan origination procedure and allows for manual reviewing at any stage of the process. Should any necessity arise, the automated system sends the mortgage application to a manual reviewer. The reviewer may address it and feed the application to the automated process at the precise point where it left the system. This allows the reviewing staff of lending institutions to address the issues efficiently. On the other hand, when a reviewer sends an application to an inferior automated system after the review of the document, the processing of the loan application has to start afresh. This causes a waste of time and resources for the financial institution.

Ability to Conform to Market Requirements

A financial institution needs to be able to predict changes in the market. With advanced loan origination software in place, the organization can quickly adapt to the new market requirements. An important feature of good software is its versatility. A loan reviewer may incorporate the changes into the program and key in the data from a mortgage application to consider if the applicant would qualify for the loan under the new requirements. A deficient program would not work for the changed criteria. Professionals involved in the loan process would have to rewrite the software for the new criteria and test it extensively to establish its efficacy. This could result in a loss of time.

An Extensive Database

An improved loan origination program has a wide range of data inputs. This allows a lender to scrutinise the details provided by an applicant and judge correctly to see if he can meet the criteria for a specific mortgage product. An imperfect loan origination program with fewer links to data records may not present a correct picture of the client. This may cause a lender to reject a genuine application for a mortgage. At the same time, an insufficient database may result in a lender making an unsafe lending choice in favour of a fraudulent customer.

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