The Many Applications of Mortgage Software

by Frank Shields Understand The Banking Business Better

When it comes to mortgage software, there are a lot of options available in the marketplace. Determining which one is the best fit for you or any individual consumer of the business entity really depends on what type of business they are engaged in, and what applications they will be using the software for. For starters, it is important to understand what the software is to be used for. Will it be used to assist in the loan origination process? And if so, is the primary application going to be the management and generation of new leads or as an aid in the loan processing process. Alternatively, is the software going to be used for loan portfolio management, such as when a credit union or bank is conducting a risk analysis assessment on a large portfolio of loans they are holding? Let’s look at look at some of the applications in more detail.

For the loan origination side of the mortgage business, there are a number of ways that software can increase efficiency. For starters, many loan originators use software to embed the rate sheets on partner websites to display real-time pricing. These partners can include realtors, appraisers, title agents, or other individuals with whom the loan originator typically works. Another application is to use software as a means of managing a pipeline of prospective loans throughout the origination process. This allows originators to accurately track the loan process from the preliminary application all the way through closing, and to make projections as to their closing volumes on a monthly or quarterly basis.

Another aspect of loan origination is the processing side. When a loan application is submitted, there are typically a team of loan processors who work for a bank or other lending institution. These processors work in tandem with the loan underwriters and the loan originators to ensure that all require paperwork and conditions of the loan closing are met in a timely fashion. For loan processing, there are many mortgage software solutions that are beneficial for expediting the process. Some of the applications include loan pricing and eligibility engines that enable processors and underwriters to very quickly determine a prospective borrower’s eligibility for a specific loan product, as well as the rate of interest. Other tools include applications that include safe harbor documentation on how a decision was reached for a specific borrower in regards to a loan product. This can be retained in the loan file to address the anti-steering provisions of the Dodd-Frank legislation.

Perhaps the most useful applications of mortgage software are the data management and risk analytics tools that enable banks, credit unions, and other lending institutions to utilize data visualization to evaluate large pools of mortgages. These analytics allow portfolio holders to create forecasting models and evaluate historical trends to more precisely see where opportunities or risks are present within their loan portfolios. In light of the credit crisis of the mid-2000’s, having the ability to get these kinds of insights through risk analytics is more important than ever.

In summary, like every industry, the lending and mortgage industry has a large variety of software applications that have the ability to assist every facet of the loan origination, processing, fulfillment, and servicing process. Understand the features and applications of the various types of software are critical to making the right investment into a mortgage software solution.

About The Author: The author of this article about mortgage software and loan management software has worked in the real estate business for his entire career and now enjoys writing about his experiences and expertise.