Advantages of Using Loan Origination Software
Advantages of Using Loan Origination Software
Leading mortgage companies and lenders realize the potential benefits of loan software and have already incorporated it into their business model. Legacy systems are still wholly reliant on manual processes that leave lenders with little to no time for process improvement, improving client experience and analyzing data trends. Put simply, the majority of lenders’ time is spent trying to oversee on simple, repetitive processes. That’s where automation comes into play.
This new technology can be custom tailored to meet the unique demands of every organization and grow along with the company. Utilizing cloud-based platforms results in enhanced efficiency at all stages of the loan process and a customized operating system features a completely automated workflow for all required tasks. As more and more businesses turn to automated alternatives to handle daily tasks, loan management systems offer a precise, reliable function that mitigates risks associated with human error and workload management.
Here is an overview of the main advantages lending professionals can tap into by leveraging the many capabilities of LendCRM’s cloud-based loan origination software.
Better Client Experience
According to recent polls, over 70% of the existing home loan consumer base in the country prefer online application options. These numbers confirm the increasing demand for technology-enhanced mortgage processes. The documentation process associated with mortgage origination and closing is inherently time consuming and tedious—historically ranging from a few weeks to several months. LendCRM’s suite of customizable services has changed all that. Our platform simplifies operations, which results in a streamlined, efficient user experience. Clients can easily upload all required documents on the dedicated documents portal for all stages of the mortgage timeline—including application, under-writing and closing. Lenders can also create templates of their contracts using LendCRM’s contract builder and seamlessly upload them along with the loan terms.
Informed Decision Making
Cloud-based loan management platforms allows you to make quality lending decisions in a fraction of the time it takes to do so using legacy software. We empower lenders by allowing them to instantly leverage multiple data points in the underwriting process—from credit, identity verification, valuation and more—to provide them with an accurate applicant profile. LendCRM’s software enhances the application review process by automating a variety of guidelines and calculations that applications must satisfy in order to qualify. LendCRM’s proprietary Rate Engine can quickly and easily calculate viable interest rates for applicants based on an adjustable pricing matrix that accounts for a number of variables to include the borrower’s credit history, the location of the property, LTC, ARV and more. This greatly streamlines the underwriting process, allowing lenders to concentrate their resources on growing and improving their overall business model to optimize profitability.
Cost & Time Efficiency
Legacy systems that are entirely dependent on IT hardware and infrastructure have continual associated costs in the form of electricity and reimbursing personnel to install, maintain and update it. Cloud-based systems like LendCRM require significantly less upkeep and attention—freeing up your IT staff so they can focus their valuable time and attention on higher-value pursuits more in-tune with your business development efforts. When it comes to outright costs, take a moment to recall just how much money you devoted for your legacy system server, storage hardware, physical space and software licenses. If you choose to stick with your legacy software for the long run, you will incur these expenses every time you have to upgrade it. That all changes with LendCRM’s cloud-based management software, that eliminates the costs tied to selecting, procuring and installing hardware. The space you once used to house IT hardware can be optimized for operational uses and because we handle system updates and licensing, you will save a significant amount of time and money.
The headlines are dominated by hacking scandals and stolen identities. Cloud-based loan servicing systems employ cutting-edge security features whereas in-house software quickly becomes obsolete and therefore more vulnerable to potential security threats. With LendCRM’s robust network of comprehensive security features, you can rest assured that all of your data is safe. By implementing identity and access management features and fully encrypted and secured workflows, lenders can generate, edit and store all mortgage documents without running the risk of the data being compromised.
Cloud technology is revolutionizing the lending business. The multitude of capabilities and resources that LendCRM’s loan management software has to offer makes it a must-have for lenders regardless of their size or market specialization. To reduce operational costs and optimize efficiency, contact LendCRM today to take your lending business to the next level!