Are You Keeping Score?

*Are You Keeping Score?*
**By Tony Garritano**

TonyG***Let’s face it, every lender needs to be as efficient as possible. Earlier in the year the MBA reported that the cost to originate is at a historic high. And with rates rising and volume falling, that just makes matters even worse. As a result, at the Third Annual PROGRESS in Lending ENGAGE Event Fiserv announced new enhancements to the Common Origination Platform that can help lenders reverse this trend.

****Many small banks and credit unions are seeing that automated scorecard analysis in loan origination is a necessary tool to maintain their competitive edge in this industry. Automated scorecard analysis speeds up the underwriting process enabling greater efficiency when moving a loan from application to closing. In a time where “now” is not fast enough, scorecards and decision engines make it possible for financial institutions to originate more loans, ultimately providing a more efficient consumer lending experience.

****Now this scorecarding technology will be available through Fiserv’s The Common Origination Platform. The Common Origination Platform from Fiserv provides lenders with loan origination software tools to engage with borrowers. Using one lending software platform, lenders have access to a single customer view across business channels, including mortgage, consumer or small business. With data about the lending customers in one place, regardless of the point of origination or loan type, the lender can reduce risk, gain processing efficiencies and use information more effectively across the enterprise.

****Further, automated scorecard analysis is a tool used in loan origination that allows financial institutions to configure borrower attributes based on their defined parameters. Financial institutions select their target market and create custom scorecards to best fit their client base. The attributes in the scorecard tool contribute a certain amount of points to the total score allowing the financial institution to yield higher scores for good borrowers, or alternatively configure good attributes to yield no points. Therefore, lower scores being indicative of good borrowers.

****Financial institutions and lending organizations are already seeing that automated scorecard analysis in loan origination is a necessary tool to maintain their competitive edge in this industry. Automated scorecard analysis now available through Fiserv’s The Common Origination Platform speeds up the underwriting process, enabling greater efficiency when moving a loan from application to closing. In a time where now is not fast enough, scorecards and decision engines make it possible for financial institutions to originate more loans, ultimately providing a more efficient consumer lending experience.

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.