Why You Should Automate Your Loan Processing System
In order to process a loan, one must be equipped with the necessary skills and knowledge. Basically it is the step by step process from the moment a loan application is received, the time the loan is closed, the loan proceeds are disbursed, and the total amount of the principal plus interest is recorded in the lender’s book. With the creation of the computers, loan processing is made easier through the loan origination software or more commonly known as the LOS system. This special software was made to do all the tasks required in the loan processing. Gone are the days where manual labor is needed to do the loan processing, more application can be facilitated with the invention of the LOS System. The advantages of the LOS system will be discussed.
Lending companies will find it easy to capture all the required documentation necessary to track funds since the monitoring on the disbursements will be centralized. To give an explanation, the lending company can easily manage the project budget and invoices, and track loan and closing fees. This homepage provides you with a detailed explanation about it.
Increase with the number of loan applications would be beneficial for the company. With enhanced speed and accuracy of loan applications, there is better user experience. Even those who have second thoughts about applying for a loan can be easily convinced because of how fast it can be processed.
Minimal error on paper documents would be experienced since the information is transformed into a digital format. Evaluation results would have better quality. There will be no lost or misplaced documents.
Information about the loan process can be easily conveyed to the applicants. These notifications can be sent thru email, print, and even text messages.
It simplifies the decision making by automating different rules that applications must meet to qualify for a loan It is easy for the lending company to identify well-qualified applicants or decline applicants who have no credit history, are underage, or over-extended credit. The combination of decision rules and integration with credit data sources and services lets lenders automatically calculate optimum loan structures and terms.
Customization of underwriting features like the lender policy, commitment letter, credit summary, and risk ranking scorecard is made easier. Customized underwriting of each loan can be easily understood by the applicants.
With the LOS system, applicants can access the website in their very own homes. It is convenient for both the customer and the lending company.
To sum it up, using the LOS system enables the lending company to quickly evaluate and identify applications that meet the lending criteria, underwrite confidently, notify the borrower and fund the loan. It makes the loan process easier and quicker.
One company that offers the LOS system is Sync1 Systems. Sync1 Systems is an Austin-based Fintech company offering a complex loan origination system, internet banking and account opening solutions specifically for credit unions. To learn more about them click the bolded text.