What’s the key to maximizing profit and efficiency? Many lenders might say using technology or getting rid of paper and embracing electronic mortgages. And to an extent they are correct. A well-tuned loan origination platform, combined with state of the art document engines, compliance software and settlement services automation can dramatically reduce the time and cost needed to close a loan.
However, too many lenders pay significant dollars for their technology systems without taking the time to learn how to use them to their maximum effectiveness. This is a simple idea, but the sheer complexity of LOS platforms makes it difficult to achieve, especially when considering the myriad of integrations to third party vendors that are available today. Implementing an effective mortgage lending system requires that lenders have a level support that results in optimal technology adoption and the flexibility to take advantage of best of breed vendors that can meet their unique needs.
Teach Me How to Use It
The key to an optimized lending environment is getting the most performance out of the loan origination system as possible. Too often, lenders continue using old processes with new technology because no one has shown them a better way.
When evaluating LOS vendors, lenders should look for two key things to ensure they are getting the most out of their investment. The first is the initial consultation and implementation provided by the vendor. A vendor that is dedicated to the lender’s success will take the time to understand the way a lender currently works and identify key areas where the new LOS can improve performance. This allows the vendor to align the needs of the lender with the capabilities of the software and uncover best practices that will introduce changes to existing processes that result in efficiency gains.
Secondly, vendors should be evaluated on their ability to provide ongoing training and support to continue getting the most out of the system. Training and support should be more than a reference guide or manual. It should address specific tasks and processes by laying out prescriptive recommendations on how best to automate workflow. The best vendors will be proactive about training and support, with the acknowledgement that system adoption is a never-ending process because new features are continuously added.
But an important element that cannot be overlooked is a robust service department that is committed to helping clients. Quality service is not just for troubleshooting, but to fine-tune system adoption. Having experienced, knowledgeable and responsive support fills in the detailed usability gaps that documentation and training cannot satisfy.
Build a Technology Framework that Supports Optimization
Optimizing the use of technology will help lenders improve their efficiency, but to truly maximize their investment, lenders should look for technology that adapts to the unique needs of each company. The LOS has evolved into an extensible system that is augmented with best of breed integrations to quality service providers.
In today’s highly specialized world of mortgage lending, flexibility reigns supreme and lenders demand tools that best fit their particular business needs. The right document engine, automated compliance module, settlement services, web portal and other key pieces of the loan process will vary greatly between lenders based on volume, loan products, business model and geography.
To this end, when lenders are evaluating their LOS provider, the first question they need to ask is, “does this system integrate with the services that I want, or am I being forced to use certain vendors regardless of their fit for my needs?”
Innovative lenders will look for LOS providers that foster a best of breed technology environment that is open and accessible, willing to work with the third-party providers to build strong integrations that help the lender truly optimize each piece of the loan process. LOS providers that promote an open API model for integrations provide a simple environment for third party partnerships, resulting in quicker integrations and the ability to fine-tune functionality to be as effective as possible.
In a tech-driven world, the mortgage lenders who will be the most profitable are the ones who can most effectively reduce the time and cost of closing each individual loan. By taking the time to select the right partners, and then learning how to use those systems to the utmost capacity, lenders can position themselves to grow their business and better serve their customer base.
About The Author
Linn Cook is senior communications manager of LendingQB, a leading loan origination software provider delivering customer solutions that combine technology and good business practices. LendingQB is a provider of 100% web browser-based, end-to-end loan origination software that offers residential mortgage banking organizations faster closing time and reduced costs per loan. To learn more visit www.lendingqb.com.