small business loan servicing solutions


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loan origination system features

The lending industry is evolving. Quickly.

Innovative new loan origination system (LOS) features are helping lenders stay ahead, even in competitive industries like auto and real estate lending. Sophisticated technology takes the guesswork out of the loan structuring process, so lenders can make better decisions and assess risk accurately.

Which new loan origination system features are having the greatest positive impact on the lending industry? Automatic deal structuring, real-time data analytics, configuration options, and quick deployment are making the biggest splash. These features simplify and speed up every aspect of the loan origination process, saving you time and money. If you’re looking to upgrade your LOS, make sure your new system will have all four.

4 Must-Have Loan Origination System Features

#1: Automatic Deal Structuring and Decisioning

What if deal structuring and decisioning could be done for you? Modern technology makes it possible.

Automatic deal structuring and decisioning has been around for a while. In the past, it wasn’t as robust or reliable as it is now. Advances in predictive modeling and machine learning mean that auto structuring and decisioning are based on thorough data analytics and historical trends. With these tools, modern software systems can predict loan outcomes better than traditional manual calculations.

A modern LOS gives lenders a full picture of all of the data involved in the structuring and decisioning processes. To make accurate decisions, a modern LOS will:

  • Keep detailed records of all historical data;
  • Generate scorecards that represent historical data or other important factors;
  • Define formulas and custom data elements to make predictions based on current scorecards; and
  • Provide terms, rates, sales prices, and other specific recommendations on a case-by-case basis.

To use this system, all you have to do is upload or input your data into the cloud or connect the LOS to a data warehouse. The LOS does the rest.

If you want greater control over the deal structuring and decisioning processes, a modern LOS will offer a mix of automatic, manual, and hybrid decisioning options. You have the choice to let the system work its magic or do calculations yourself by hand. You can choose the structuring or decisioning method that makes the best use of your staff’s time.

#2: Real-Time Data Analytics and Reporting

Real-time data analysis facilitates greater profits for lenders. By analyzing data in real-time, you can identify inefficiencies in your system and fix them quickly. Without this loan origination system feature, it can take months or even years to discover such problems. Big data drives positive change, so that businesses can stay ahead of the competition.

To take advantage of the best real-time data analytics and reporting tools, look for an LOS that can:

  • Track loan decline and approval ratios and compare them with origination scorecards;
  • Monitor how long it takes for customers to move from application to approval or denial; 
  • Track weekly or monthly capture, approval, or denial ratios and flag numbers that deviate from the norm;
  • Compare loan officer performance over time; and
  • Flag waivers or manual decisions that override the LOS’ automatic decisioning.

The goal is to not only identify potential problems, but to do it in real-time. A modern LOS can be configured to automatically flag unusual sets of data or decisions. From there, an expert can take a closer look at the issue and take immediate action. Your company won’t have to deal with the fallout from a poor deal structure or a steep decline in performance. You can address these issues before they affect your bottom line.

#3: Configuration Options

Configuration is essential in a modern LOS. If your current system doesn’t offer any customization options, then you can’t operate at peak efficiency. That’s because every lender is different. You have a distinctive portfolio of borrowers and different markets or demographics that you want to capture. Your staff and expertise is also unique. You need a system that adapts to your team and its processes, not the other way around.

However, customization can be expensive. If a programmer has to develop using code, it could cost you thousands of dollars and may take months or years to complete. Instead, look for an LOS that includes configuration options as a core function, such as:

  • Custom user dashboards that are easy to navigate; 
  • Drop-down menus;
  • Drag-and-drop data entry; 
  • Personalized display fields; 
  • Formulas based on historical data; 
  • Individual performance goal tracking; and 
  • Configurable rules that can change on the fly.

All of these loan origination system features will help you customize the LOS to fit your specific needs and offer better loans to your customers.

#4: Quick System Deployment

All of the loan origination system features above are important. However, they’re only useful if you can implement them quickly. Spending years upgrading your LOS could cause you to fall behind your competitors.

This is why fast LOS deployment is vital. Look for an LOS provider that has:

  • A team of trained experts on staff that can complete your system on a tight deadline; 
  • Experience with the lending industry, including details like compliance, data security, and industry best practices, for fewer unexpected delays down the road;
  • Flexible desktop, laptop, and mobile dashboards; and
  • Technical support and troubleshooting options on-demand.

To determine whether your LOS vendor can offer speedy implementation, ask to see samples of LOS dashboards they have designed in the past. The best vendors should use this as a basis for the design but also include customized details that are tailored specifically to your organization. Ask for a deployment time estimate based on that type of system (the type you want), not just an out-of-the-box installation.

Implementing These Loan Origination System Features

Although these four loan origination system features are essential for lenders who want to stay competitive, not all vendors offer them. A great deal of LOS software is out of date and doesn’t make use of the most advanced technology.

To get these loan origination system features, work with a vendor who understands their value. An LOS that has all four features will be fast, efficient, and easy to use. This, in turn, will help you edge out the competition and establish your organization as an industry leader.


Getting Started

defi SOLUTIONS offers an advanced LOS with automatic structuring, real-time analytics, configuration options, and rapid implementation. To get started, contact our team today or register for a FREE demo of our LOS.


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