Without a reliable loan origination system workflow, lenders may find it challenging to systematically review all the loan applications they receive and make timely decisions on approvals or rejections. Finding the right LOS workflow minimizes loan origination inefficiencies, improves productivity, and enables financial institutions to provide their customers with appropriate financing options. This is possible through loan automation that expedites admin tasks and encourages faster decision-making to secure loan approvals.
Below, we’ll explore how you can optimize your LOS workflow, focusing on the top three features that will improve loan origination at your institution.
How Do I Optimize the Lending Process?
Optimizing your LOS workflow comes down to understanding which processes work effectively throughout the loan origination lifecycle and which can be adjusted to reach peak efficiency.
Here are a few ways you can achieve an optimized LOS workflow:
Identify Bottlenecks and Roadblocks
From the start of a loan application through its approval (or rejection), there are likely several bottlenecks within your LOS workflow, including:
- Backlogs in reviewing loan application documentation submitted by applicants
- Delays in third parties conducting credit checks
- Outdated processes for adhering to regulatory compliance requirements
- Limited customer support options to assist loan applicants that encounter technical issues when applying for loans online
Identifying these bottlenecks and roadblocks will help you implement the most relevant and appropriate solutions to improve loan origination and better serve your customers.
Document the Process
It also helps to document loan origination from start to finish to gain more visibility into how each step in the process works. For instance, you might discover differences in the rates at which in-person vs online loan applications are approved.
Documenting the loan origination system workflow will also help you evaluate your compliance with industry standards, especially for processes involving sensitive data exchanges between your financial institution and customers.
Find a Proven LOS Solution
Ultimately, investing in a proven LOS solution will save you time and money down the line while improving your loan origination workflow. Integrating a next-gen loan origination solution like Fuse will help optimize your workflow and improve the effectiveness and efficiency of your team’s processes.
Typically, upgrading your LOS is a great time to garner external feedback from your broader team on which processes work best and determine which ones require upgrades. With Fuse, you can systematically upgrade your LOS, minimizing the bandwidth or technical constraints of tackling it with just your internal team.
Basic Functions of a LOS
At the bare minimum, a loan origination system for credit unions or bank should have the following features:
- A document management system to track loan applications, credit reports, and financial statements
- Data security features to protect your customers’ data from being stolen or compromised
- Built-in customer support to provide loan applicants with on-demand assistance
- Integrations and APIs to connect with third-party partners who complete tasks on your behalf
Combined, these features smoothen complex loan origination processes and make it easier for customers to apply for financing options.
3 Key Features to Streamline the Loan Origination System Workflow
Now let’s dive into three key features that will improve your loan origination system workflow and maximize the efficiency of lending to customers:
#1 Self-Service Financial Rule Editing
Today’s sophisticated risk profiling and pricing models require flexible financial rules that can be initiated by your internal team, even without specialized coding experience. A self-service financial rule editing feature increases the speed of testing and iteration during loan origination, enabling your business to develop more complex decision rules to match industry demands.
For instance, you can establish rules that:
- Save costs by only calling specific data providers ad hoc
- Manage multiple parallel programs to cater to different types of loan applicants
- Provide a range of offers to your customers during the loan origination process
#2 Open API Integrations
If you work with providers that currently meet your loan origination needs, the last thing you’d want is to adopt a loan origination platform and take on new partners.
With Fuse’s open API system, you can integrate any of your preferred providers. Besides having over 100 providers from which to choose, you can also bring your own—and you don’t have to pay fees when doing so.
#3 Customizable Agent Dashboards
Visibility matters when upgrading or optimizing a loan origination system. Moreso, having a personalized view for each department in your company can help minimize training needs, improve efficiency, and reduce errors since the individual departments can only access the functionalities necessary to perform their role-related tasks.
Our platform allows you to create customizable dashboards for each department with a low-code model, reducing the overall time-to-market for the apps or integrations you develop.
Increase Your Efficiency and Earning Potential With Fuse
In today’s fast-paced digital economy where customers are looking for quick, reliable, and convenient solutions for their financing needs, your business can stand out when using a next-gen loan origination system workflow like Fuse. You can integrate and customize your LOS workflow from start to finish, improving efficiency and hitting your revenue targets much faster.
Check out a Fuse demo to learn more about these LOS features.
Bankrate. What is Mortgage Loan Origination? https://www.bankrate.com/mortgages/home-loan-origination-process/#process