10 LOAN ORIGINATION SYSTEM MODULES A MODERN LOS NEEDS

A modern loan origination system (LOS) is critical for financial institutions to manage the entire loan lifecycle efficiently and effectively. In the face of changing technology and market dynamics, modern LOS provides various benefits and opportunities for lenders and borrowers. Fueled by technological advances, the LOS market will increase at a 12% compound annual growth rate, exceeding $12 billion in global market value by 2030, according to Allied Market Research.

Top 10 Loan Origination System Modules and Features

Lenders must have the most productive loan origination system modules in their LOS platform to remain competitive. The table below lists the top 10 modules and features that lenders should look for in a modern LOS:

Top 10 Modules/Features for Modern Loan Origination System
Application Processing	Facilitates the collection and processing of borrower information and loan applications.
Decision Engine	Evaluates borrower creditworthiness and risk profiles, determines eligibility for loans, and applies complex pricing matrices to price deals to best fit the lending portfolio
Workflow Automation	Automates the loan origination process, routing applications and tasks to appropriate users.
Integration Capabilities	Integrates with third-party data sources for real-time data retrieval and validation and provides integration builder tools to let lenders build their own integrations on the fly
Analytics and Reporting	Provides insights into key performance indicators, loan pipeline metrics, and portfolio performance.
Document Management	Centralizes document storage, retrieval, and electronic signature capabilities.
Product Configuration	Configures loan types, terms, interest rates, and repayment schedules based on customer needs.
Compliance and Regulatory Tools	Ensures adherence to regulatory requirements such as AML, KYC, TILA, etc.
Customer Relationship Management	Tracks customer interactions and communication logs for personalized service.
Loan Servicing Integration	Integration with loan servicing systems streamlines the transition from origination to servicing.

These modules and features empower lenders to streamline loan origination processes, enhance customer experiences, mitigate risks, and maintain regulatory compliance in today’s dynamic lending environment.

defi Has the LOS Modules and Features Lenders Require

defi has loan originations platforms that help lenders take advantage of new technologies and trends. As a third-party partner in the end-to-end lending process, defi looks to meet the needs of borrowers while making decisions easier for lenders.

Our defi ORIGINATIONS is a modular, stable, highly configurable originations solution powered by automation that sets a foundation for advanced functionality such as machine learning and artificial intelligence. With defi ORIGINATIONS, lenders no longer need to make tradeoffs between choosing flexibility, configurability, scalability, or reliability.

defi ORIGINATIONS includes the following features:

• Easily customizable
• No-code configuration capability for workflows, rules, policies, features, and the decision engine 
• Efficient automated and manual decisioning and funding 
• Application programming interfaces (APIs) and the ability to build and modify integrations easily
• Modern user interface (UI) that focuses on user experience (UX) and personalizes navigation
• Integration builder tools to modify existing integrations and build new ones
• Support for complex pricing matrices and models
• Fast implementation of business decisions

In addition, successful loan originations systems require more than excellent core technologies and features. They also need access to a broad spectrum of third-party services and data sources that drive lender success. defi has lined up a core set of partners integrated into our loan origination platforms: credit bureaus, bureau aggregation services, decision engines, eSign tools, fraud tools, verification services, collateral appraisals, alternative data sources, car value guides, document generation services, aftermarket products, and compliance services.

By leveraging defi technology, lenders can differentiate themselves in a competitive lending landscape through automated decisioning, blockchain technology, and personalized lending experiences.