Loan Origination Software – 5 Must-Have Features Modern Lenders Need to Do Their Best Work

Thanks to technological advances in recent years, managing loan service systems has become a breeze. The industry that was largely reliant on human forces can now run with higher efficiency with automated systems. 

The lending market is expected to surpass over $4812 million by 2028. There has been a tremendous increase in competition among lenders to attract customers. 

Borrowers want a seamless digital process with shorter approval and loan processing time when choosing a lender. And with an efficient and automated Loan Origination System (LOS), you can impress new clients and improve customer experience.

With new government loan schemes for businesses like Paycheck Protection Program,  Covid-19 Small Business Loans and Assistance, Economic Injury Disaster Plan, and others, the number of borrowers applying for loans has exponentially increased.

To provide speedy loan service without any confusing application process and complete loan underwriting and loan servicing in record time, you need a loan origination system as dedicated as you.

At Clustdoc, we interact frequently with loan experts and hear about the features they want to help them manage mortgage applications more efficiently. 

I’ve compiled a list of the top must-have features in loan origination software in this post to help you find the best LOS for your company.

End-to-end Loan Origination System for Faster Processing

Origination is a time-consuming and tiring process. It involves the usage of massive spreadsheets, data re-entry, and never-ending documentation. 

But with the right tool at hand, your workday will be less stressful for you.

An ideal LOS will meet customer expectations and simultaneously push your lending business growth with robust end-to-end features. 

Automated origination, comprehensive portfolio management, financial statement analysis, underwriting, and reporting are a few end-to-end features to keep an eye on in an LOS.

With an end-to-end loan origination software system, you can identify opportunities sooner, enhance customer communication, reduce errors, and increase revenue.

Advanced origination system like Clustdoc can create and automate workflow, allowing agents and borrowers to complete the process with minimal errors. 

Clustdoc connects and automates every stage of the loan process– from document collection to decision-making. It provides an end-to-end solution that simplifies documentation and provides transparency and control at every stage.

If your loan origination software requires you to use papers, it’s time to say ‘NO’ and look for an alternative.

A System with Paperless Flow of Information (Don’t Pile Up Paper on Your Desk)

If you have still not migrated from paper-based to digital loan origination process, you have to start the move now. Companies that go paperless have better overall performance and a higher profit margin. 

Paper document collection will only delay your business and drive borrowers away.

Small business owners who require emergency loans to stay afloat will not wait weeks to finish the paperwork because they need the financial help fast. You need to speed up the origination process, and one method to achieve so is to switch to a paperless system.

A paper-based loan process makes processing loans complex, increases loan approval time, drastically reduces efficiency, increases overall workload.

Borrowers want a seamless experience, and failing to provide that means you lose business to your competitors. 

An ideal loan origination system must allow lenders to originate and close loans electronically. Clustdoc’s digital paperless lending software provides scalability, relevance, and performance while decreasing loan approval time.

A Smart Workflow to Request Documents without Missing Any Detail

The workflow structure of the loan origination software is another element to consider while choosing one for your company.  Financial organizations need a robust workflow engine that scales lending operations, accelerates loan automation, and provides customer support. 

Manually handling the continuous steps involved in loan origination is challenging. To reduce manual stages, manage high volumes of loan requests, and give borrowers a smooth origination system, you’ll need workflow automation in your LOS.

Workflow requirements vary depending on the lending procedure. You can support variance in loan origination and move all of the loans through the process using a smart loan origination software like one from Clustdoc.

You can request and collect all relevant files using Clustdoc’s smart checklist and document collection tool, ensuring that no document required for legal loan processing is missed.

An Automated Origination Process to Reduce Effort

To mitigate the effects of financial loss that companies had to bear during COVID and keep their business afloat, Governments launched different loan schemes to support small businesses ( for example: Paycheck Protection Program for Small Businesses). The number of companies applying for loans has increased exponentially since then.

Loan officers come across thousands of loan applications every day. Manually processing each one of them is next to impossible. And with every new application, the old applications go down the list, making loan processing much slower. 

An automated loan origination software such as Clustdoc will help you deliver instant, automated decisions to applicants with improved efficiency and reduce errors and efforts. 

E-signatures to Pace Up the Loan Approval Process

It’s tough to meet borrowers in person and gather signed paperwork during  COVID.

You can obtain electronic signatures from borrowers using your loan origination software, which will save you time and money.

Previously, getting signed paperwork took days since borrowers had to sign the paper, post it or visit the office to return it. You can now gather e-signatures in minutes using an innovative loan origination platform like Clustdoc.

With Clustdoc, you can collect legally binding e-signatures without needing to print, sign, and then scan documents any longer. 

Your loan origination process will be faster, simpler, and more convenient using Clustdoc’s e-signature feature.

Do You Want to Start a New Seamless Loan Origination Process?

Do you want to eliminate the manual application process and human errors that can delay the loan origination process and lead to customer dissatisfaction?  

Speed up loan origination process with Clustdoc which includes all the features you need in an ideal LOS.

With Clustdoc, you can speed up the end-to-end loan origination process to increase staff efficiency, enhance customer experience, provide security for loan documents, and reduce costs.

Table of Contents

Now that you’re here

Clustdoc is a client onboarding orchestration platform used by modern teams around the world. With Clustdoc, you can run automated workflows for requesting, reviewing and verifying new customers’ data, documents and contracts – without juggling between tools. 

If your team is managing new customers using emails, spreadsheets and PDFs, you’ll probably love using Clustdoc.

How useful was this post?

Click on a star to rate it!

Average rating 3 / 5. Vote count: 417

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?