Choosing an LOS 101: Three Must Have Features

When navigating the selection of a Loan Origination System (LOS) in a technology-driven era, lenders must prioritize features that significantly reduce origination costs through automation. Here are three critical considerations:

Automation and Efficiency

Opt for an LOS that offers secure and scalable automation capabilities for processes like underwriting, document verification, and compliance checks. Identify areas within your organization that have the largest stop gaps and manual tasks – speak to your LOS vendor to ensure their automation capabilities can help increase efficiencies in these areas. This not only accelerates the loan processing cycle but also minimizes your manual errors, leading to cost and time savings.

Integration Capabilities

A system that seamlessly integrates with other financial tools and platforms enhances efficiency. An LOS that supports easy integrations with your necessary 3rd party vendors will make the flow of data easier for you and your team. Talk to your LOS vendor to see what their integration list looks like or if they have in-house products that work directly with their LOS. These can be products like doc recognition, pricing engines and POS.

Scalability and Flexibility

As market conditions, regulatory environments, and your need for advanced technology evolves, your LOS should be able to adapt. Choose a system that offers customization and scalability to meet growing loan volumes and changing regulations, ensuring long-term cost efficiency. Ask your LOS vendor if they have configurability that you and your team can utilize without developer resources. We find that a system that puts the power of automation and customization in the hands of business users leads to a higher rate of scalability.

Selecting an LOS with these features enables lenders to stay competitive by optimizing operational efficiencies, reducing loan origination costs, and enhancing the borrower experience through quicker loan processing times.