Loan Origination Software is used by financial services institutions and mortgage loan originators (MLOs) to help automate portions of the end-to-end loan portfolio cycle.
Loan origination software benefits
The software should provide:
- Underwriting automation with predefined risk analysis and loan approval algorithms. This decreases the need for manual calculations and helps accelerate credit approval, adding to customer convenience.
- Self-service and enhanced efficiency by providing customer portals to reduce the need for administrative tasks within the company (i.e., bill pay).
- Reporting analytics in real-time helps monitor the loan origination and loan servicing cycle process end-to-end.
Loan origination software features
For inclusion into the loan origination software category, a product should provide:
- Loan processing to sanction loan requests
- Document management (applications, income and asset reports)
- Centralized database to store and access information
- Audit trail
- Compliance management to track adherence or non-adherence to policies
- Adaptation to regulatory requirements, industry policies, and scoring
- Effective across multiple digital channels
- Integration with loan servicing software
- Online customer application engine
- Pricing engine and loan pricing scenarios
- Integrate with business process management frameworks to ensure greater efficiency across the organization