Top 4 Advances in Loan Origination Process
September 8, 2011 – 9:43 pmNo matter how you look at it, getting a loan is a complicated event. The loan origination process requires multiple parties, various levels of qualification, and a bewildering amount of paperwork. Thankfully, a handful of advances in the loan origination process have made things a bit simpler, a bit more secure, and more trustworthy. Here are the top four advances in the process.
1. Cloud-based loan origination software. Downloading problems, crashing computers, and failing servers have become commonplace tragedies in the life of a business. Recently, however, more data, applications, and processes have moved to something called “the cloud.” Cloud-based applications have reached the software field, meaning that contemporary loan processing services are handled via cloud computing. The result is enhanced reliability, security, and results for everyone involved in the loan process. As an added benefit, web-based software is a lot less expensive than the traditional software model. A win-win for all involved.
2. Online loan application. Most of the time, the process begins with the potential borrower sitting in a bank or other financial office. Now, most loan processing services allow online application. Online loan applications simplify the process for both the borrower and the loan officer. What’s more, online application can minimize mistakes on the part of the loan officer and the borrower. You enter the information and double check it all before sending it for approval.
3. Real time status updates. Although the process may be complex, it doesn’t have to be shrouded in secrecy. Since so many parties are involved in the process of obtaining a loan, all those parties should be privy to the process. For that reason, many software applications allow borrowers to check the status of their loan application online. This keeps you aware of the process keeping you from waiting on a phone call with results.
4. Online documentation processes. In keeping with the everything-is-online status of the loan process, more and more paperwork is going paperless. Specifically, new software allows borrowers to upload their documents directly to the mortgage software or software. This avoids the hassle of sending faxes, PDFs, or paper files hither and yon.
The loan origination process has not become less complex. In fact, with changing government regulations, and more cautions lending institutions the process is fraught with even more pitfalls and complexities. At the same time, technology has been able to keep pace with the change, allowing these advances in the loan origination process.
Marc Kent researched mortgage software because he knew that finding the right one for his business could save money. Blueberry Systems aim is to give new technologies with our loan processing software to give lenders more freedom and leverage.
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Tags: Advances, Origination, Process
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