loan origination software

Top 10 Features to Look for in Loan Origination Software

Loan origination is a time-consuming process that can be overwhelming for both the originator and the borrower. With the right approach to the procedure, lenders ensure borrower satisfaction, faster approvals, and timely assistance.

Loan origination software is one of the tools that help lenders achieve their goals by automating various elements of the origination cycle. With these programs, originators process and approve loans faster while providing much-needed support to the borrower.

When choosing the best mortgage loan origination software for your needs, keep the following features in mind.

1. Automated support.

During the origination process, borrowers have a variety of questions about documents, applications, approval chances, and much more. Originators are generally too overwhelmed to answer all these questions, update statuses, and provide round-the-clock support.

Loan origination software with AI-driven features can help borrowers find answers to their questions without burdening the loan officer. Besides creating a robust Q&A section on your website, you can take advantage of an AI-powered chatbot that keeps the borrower in the loop.

For example, Capacity’s bot can answer 92% of borrower questions without human intervention. This can speed up the approval process, keep the borrowers happy, and allow your employees to focus on other core tasks.

2. Analytics.

In the era of big data, any information you collect about your borrowers can generate useful insight. While you and your clients use the software, it must collect data about the borrowers and the way your origination system is working.

The program the lender chooses should analyze this data and provide insight into the app’s performance, reasons for competitive losses, common issues borrowers face during the origination process, and much more.

This information can help you decrease application turnaround time, attract more borrowers, and increase their satisfaction rates.

3. Loan application dashboard.

Even before the COVID-19 pandemic, the majority of borrowers preferred completing the origination process without person-to-person interactions. Today, the ability to complete loan approval online is in high demand.

With the new mortgage technology available, it’s possible to go through the entire origination process without leaving the comfort of your home.

The best mortgage loan origination software has a comprehensive loan application dashboard. This self-service channel doesn’t just help with the origination process, it can go further to give lenders and borrowers an opportunity to monitor and manage existing loans.

4. 24/7 access.

Loan officers have to juggle a variety of loans and origination procedures. To help them work on the go without missing a beat, a loan origination platform should be designed to provide real-time access to such details as loan approval status, sale price, interest rates, loan terms, and more.

Such mobile access can help loan officers optimize the loan origination process and share the necessary information with the borrowers.

With Capacity, lenders and borrowers don’t just get access to the information about each loan. They can find information about the ever-changing guidelines and regulations.

5. Document tracking.

Loan officers have to deal with a huge variety of documents. From loan applications to bank statements, keeping track of all this paperwork can be overwhelming. The loan origination software should have a robust document tracking system, so lenders can keep tabs on all the paperwork presented by the borrower.

A centralized repository for files with documents can simplify the loan officer’s work and speed up the approval process. It can also eliminate borrower satisfaction issues that arise due to lost files.   

6. Automated underwriting.

In the mortgage industry, a digital underwriting process is no longer a nice option, it’s a necessity. Today, automated loan underwriting is a common way to get approval. All the borrower has to do is submit the necessary documents to the system and receive a nearly instantaneous decision.

With the automated underwriting solution, lenders can save time and money since manual underwriting is time-consuming. Borrowers prefer the digital process since it’s fast and eliminates human bias.

While the automated underwriting feature, you can set custom loan approval rules to make faster and more accurate approval decisions.

7. Customer management.

Loan origination software should make it easy to manage numerous customers from a centralized location. With seamless access to their documentation and the automated underwriting feature, the management process is simplified.

Loan officers can gain access to customer information and their loan status at any time and from anywhere. This centralized management option can be highly useful for loan servicing as well. 

8. Easy onboarding.

The loan origination software is an irreplaceable tool for both lenders and borrowers. To simplify the origination process, onboarding should be easy. Otherwise, loan officers could end up answering even more questions instead of focusing on core tasks.

By choosing software with easy onboarding, you can increase customer satisfaction while minimizing errors. An intuitive borrower-facing dashboard is a must-have.

Additionally, the software can improve the onboarding process for your staff. For example, Capacity can create a highly useful automated onboarding support resource for newly hired sales and operations personnel.

9. Compliance.

Lenders need to comply with certain regulatory standards that tend to change over time. The loan origination software should be flexible enough to adjust to these changes when necessary. The program should be user-configurable, so you can implement regulatory changes timely.

10. Integration.

During the loan origination process, you may need to use data from external sources to meet the regulatory requirements. For example, you may have to search data sources to find out whether flood insurance is required for a certain property.

Your loan origination system should have seamless integration with third-party data sources that you may be required to search.

Improving your loan origination process with Capacity.

Loan origination software is a must-have tool for lenders who want to streamline their origination process and keep borrowers coming. By choosing the best mortgage loan origination software for your needs, you can boost profitability and increase customer satisfaction.

Capacity’s AI-driven mortgage automation platform can help you achieve your lending goals by providing much-needed support to your borrowers, sellers, and support staff.  

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