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Key Benefits Of An Automated Loan Processing System

Loan processing requires highly skilled individuals since it is a complex process. Loan processing is the collection and verification of an applicant’s personal information and financial records for the loan, organization and preparation of loan documents that are passed on at the closing of the loan, and general recording of the transactions. Through years of research for the improvement of the loan process, developers have come up with the loan origination software or LOS system. Loan processing is made easy with this software. Gone are the days where manual labor is needed to do the loan processing, more application can be facilitated with the invention of the LOS System. The convenience that the LOS System brings will be discussed.

One benefit of the LOS system is a centralized monitoring on the disbursements which helps the lending company capture all required documentation necessary to track funds. To give an explanation, the lending company can easily manage the project budget and invoices, and track loan and closing fees. See page to learn more

With the LOS system, sales would boost since the number of loan applications with existing resources would increase. With enhanced speed and accuracy of loan applications, there is better user experience. Even those who have second thoughts about applying for a loan can be easily convinced because of how fast it can be processed.

Minimal error on paper documents would be experienced since the information is transformed into a digital format. Evaluation results would have better quality. There will be no lost or misplaced documents.
Lending companies can easily update the applicants on the status of their loan applications. Lending companies can inform the applicants thru text messages, email, or print.

Qualifications that a loan applicant must meet is automated which makes it easier for the lending company to decide.. Those applicants who have no credit history, are underage, or over-extended credit can be easily identified and declined. The lenders can automatically calculate the loan structures and terms.

In addition, the lending company can easily make customizations in the underwriting features including the lender policy, credit summary, commitment letter, and risk ranking scorecard. With the loan origination system, comprehensive underwriting features allow for consistent and efficient underwriting of each loan, regardless of size or complexity.

Anyone who has access to the internet can easily visit the lending company’s website. It is convenient for both the customer and the lending company.

Ultimately, the LOS system helps the company to quickly evaluate and identify applications that meet the lending criteria, underwrite confidently, notify the borrower and fund the loan. It makes the loan process easier and quicker.

A popular company offering the LOS system is the Sync1 Systems. They are an Austin-based Fintech company that aids credit unions by offering a complex loan origination system, internet banking and account opening solutions Click read more to learn more about them.