Top 10 Loan Origination Software for Mortgage & Banking

Certain financial institutions use loan origination software mostly for the purpose of making documents. Other institutions use it to manage the entire process of mortgage lending, starting with to application. Before you decide to sign up with a loan origination software, it is crucial to select the best one for you and tailor the program to meet your particular requirements.

The article will explore the characteristics of loan origination software and why it is an asset for mortgage lending, and the top ten loan origination software to utilize, along with hyperlinks for our reviews of those programs.

What is Loan Origination Software?

Loan origination software allows financial institutions, such as lenders and banks, to manage and automate the workflow across all stages mortgage lending process. For loan origination software, also called LOS, is the best choice to perform the following steps of the process:

• Loan application
• Underwriting
• Credit approval
• Documentation
• Pricing
• Funding
• Disbursement (or refusal) of the mortgage loan application

To provide a seamless digital lending experience to potential homeowners, the loan origination software integrates with other front-end and back-end mortgage lenders to share communications and information.

In addition, loan origination software is in line with industry compliance and regulations to secure client data and avoid security breaches. In general, loan origination software is utilized in financial establishments to manage consumer lending, commercial loans, and retail lending, SBA or SME, and mortgage lending, all within a single, central location.

Benefits of Loan Origination Software

Every day, banks and credit unions of every size across the US can benefit from the loan-originating software, simplifying the lending process and decreasing risk. Before loan origination software became popular in the banking sector, loan departments used legal form templates to create promissory notes and deeds for trusts, in addition to other documents required by members or customers.

This method was not just slow but also susceptible to mistakes, especially for lenders with several accounts, loan holders, and branches. Loan origination systems assisted lenders to solve the issues caused by manual document creation and, in the main, provide a myriad of benefits that could be derived from it, including:

Productivity. By implementing a more efficient method of document creation, lenders can enhance efficiency.
Compliance. The lender can lower the chance of compliance issues caused by the absence of details in documents.
Collectability. Loan origination software can also avoid mistakes in documents, assisting lenders in ensuring that they are collecting during foreclosures.

Also read: How Digital Lending Platforms are Revolutionizing the Loan Application Process

Top 10 Loan Origination Software

A reputable mortgage loan origination software makes it easier to complete the home loan application procedure, allowing the loan to go from opening to closing.

Here’s a look at the 10 best loan origination software:

1. Calyx

Established in 1991 by Doug Chang, Calyx Software brought together the most renowned minds from the mortgage industry and the tech industry to produce an industry-specific and top-of-the-line program. The software is designed to streamline every process of the mortgage loan process.

Based on your requirements, Calyx Point, Calyx PointCentral and Calyx Path offer numerous features to help you make life simpler. Not only can Calyx Software optimize the loan beginning process from start to end and provide essential features such as customized workflows and document management and the tracking of loan funds, internal auditor functions, central reporting, restricted access rights, in addition to numerous others.

Key Features:

• Offers Point, PointCentral, and Path platforms.
• Provides document management, compliance tools, and customizable workflows.
• Supports various loan types including conventional, FHA, and VA.

Things I didn’t like:

• Limited mobile application features.
• Higher pricing tier may be prohibitive for small startups.
• Some users report occasional system lags during peak times.

2. BankPoint

BankPoint was established in 1999 under the name VSI Solutions, Inc. In 2002, the LOS company began working with financial institutions and lenders to build the expertise of the banking system and banks. In 2007, VSI allied with an acquired bank to create a portfolio management solution and loan review. In the present, BankPoint boasts users at banks throughout the US with sizes ranging from $100 million to 40 billion. The numbers speak for themselves.

As loan origination software, BankPoint has numerous features that instantly simplify the lives of lenders from banks and non-banks of all kinds. In addition, it provides seamless workflows and automation for the duration of a loan. It also provides essential features, such as tracking the customer’s interactions, post-review advice, and many more.

Key Features:

• Specializes in commercial loan origination and portfolio management.
• Provides loan review, credit administration, and special assets management.
• Integrates with core banking systems and document imaging solutions.

Things I didn’t like:

• Primarily focused on commercial lending; less suited for residential loans.
• Higher cost structure may deter smaller institutions.
• Limited borrower-facing features compared to some competitors.

3. Newgen Software Inc.

In the past 20 years, Newgen Loan Origination has developed into one of the most well-known loan origination services, offering lenders across the world access to closing and loan origination for home loans and everything else in between.

Newgen’s most important features for loans are audit trails, document management, customer database, compliance management, and digital signatures. However, there are many more. Before you commit to a particular method of loan origination, it is essential to conduct your own research to determine which one is going to benefit your business most.

Key Features:

• Provides end-to-end loan origination, underwriting, and servicing solutions.
• Includes automated document management, compliance checks, and credit scoring.
• Supports multi-channel loan application intake.

Things I didn’t like:

• Implementation may require significant time and resources.
• Higher pricing tier may be prohibitive for small lenders.
• Complex interface may require extensive training.

4. Floify

Floify founder Dave Sims started his mortgage software company after he made an enlightening discovery: mortgage document collection can be difficult and time-consuming. This is the reason why Sims is a software engineer who developed an application that simplified the process for a lender to request documents, provide updates, and give customers a secure way to send their documents, and keep up-to-date on the state of their home loan.

Floify is about reducing your time, so you can concentrate on your clients and the expansion of your business. It lets you make it easier for you to automate obtaining the loan documents of borrowers and also archive loan files to make them accessible quickly and easily at any time, and numerous other important functions. The benefits are simple to observe; you can streamline communications and accomplish more.

Key Features:

• Cloud-based point-of-sale (POS) system for mortgage lenders.
• Provides secure document collection, automated status updates, and e-signature support.
• Integrates with various loan origination systems.

Things I didn’t like:

• Primarily focuses on document collection; lacks full loan origination capabilities.
• Limited customization options for advanced users.
• May require integration with other systems for full functionality.

Also read: What Is an Auto Equity Loan? A Smart Way to Borrow

5. Finflux

The company was founded in 2010, and its goal was to provide accessible and affordable financial services for businesses and people around the world. Since then, this revolutionary software for loan origination has grown to serve more than four million borrowers, with a total loan portfolio that exceeds $9 billion.

As a mortgage loan origination software, Finflux offers numerous features that instantly make life easier for everyone involved with the mortgage loan origination process. The decision on whether or not it is a good fit for your business will boil down directly to how closely connected you’d like to be at every step of the process. Better yet, you can monitor your team’s performance in real-time.

Key Features:

• Provides loan origination, servicing, and collections management solutions.
• Supports various loan types including personal, SME, and microfinance.
• Offers real-time analytics and reporting tools.

Things I didn’t like:

• Limited borrower-facing features compared to some competitors.
• Some users report occasional system performance issues.
• Lacks advanced automation features found in larger platforms.

6. TurnKey Lender

With over 200 employees and an annual revenue of $11 million per year, TurnKey Lender has grown to become one of the top names in the software for loan origination. TurnKey Lender’s software has assisted over 200 companies in 50 countries to improve their loan origination processes.

As a loan origination software, TurnKey Lender has numerous options that will simplify the lives of lenders of all kinds. The decision on what it is that will benefit you is based on placing a loan into the right hands of the borrower with the appropriate conditions.

Key Features:

• Provides end-to-end loan origination, underwriting, and servicing solutions.
• Includes automated decisioning, credit scoring, and collections management.
• Supports various loan types including consumer, commercial, and SME.

Things I didn’t like:

• Implementation may require significant time and resources.
• Higher pricing tier may be prohibitive for small lenders.
• Complex interface may require extensive training.

7. LendingPad

LendingPad is a unique loan origination software that was designed by mortgage experts from residential areas in the year 2015 to enhance customer experience, help make more lending decisions, and further improve the capabilities of loan originators. Since then, LendingPad has become a top-tier, end-to-end innovative LOS with unique features like multi-user sharing of the same file editing capabilities and real-time pushed updates, among others.

With special editions specifically designed for mortgage brokers, mortgage lenders, banks, credit unions, and other institutions of finance, the goal of LendingPad is to increase collaboration in real time and save money on operating costs. It also comes with an integrated CRM instrument. In this review, we’ll be using it as a loan origination software.

Key Features:

• Cloud-based loan origination system for mortgage lenders.
• Provides real-time collaboration, document management, and compliance tools.
• Integrates with various third-party services.

Things I didn’t like:

• Limited borrower-facing features compared to some competitors.
• Some users report occasional system performance issues.
• Lacks advanced automation features found in larger platforms.

8. Mortgage Automator

Mortgage Automator is a complete loan origination and servicing software that is suitable for hard and private money lenders throughout North America. The first and most important thing is that Mortgage Automator offers key features and services that permit you to cut down on time in your loan servicing procedures to allow you to focus on growing your business.

Mortgage Automator offers a complete loan origination software that can manage your lending process. Your borrowers can also utilize Mortgage Automator’s borrower portal and a loan application to apply for pre-approvals and new loans. To look over team sheets and LOIs quickly, Loan officers are automatically assigned and informed.

Key Features:

• Provides loan origination, servicing, and collections management solutions.
• Includes automated decisioning, credit scoring, and investor portals.
• Supports various loan types, including hard money and private loans.

Things I didn’t like:

• Primarily focused on hard money and private lenders; less suited for traditional banks.
• Higher pricing tier may be prohibitive for small lenders.
• Implementation may require significant time and resources.

9. i-Apply

Managed by Relational Financial Solutions, i-Apply is an all-inclusive loan origination software that simplifies the loan application process. i-Apply is there to assist you throughout the process, starting with the initial application to a credit facility, to rejecting the application, or in the case that the loan is approved, the payment of the loan amount.

Since its beginning, i-Apply has become one of the most renowned software solutions companies in the world, having an international presence that spans 35 nations. Offering a range of high-end products, Relational FS serves more than 300 corporate customers in the core sectors like retail, banking, telecoms, telcos, and the public sector. Apart from the i-Apply platform, Relational FS delivers loan origination, loan management, and debt management solutions via its numerous solutions (LMS as well as AroTRON).

Key Features:

• Provides loan origination and management solutions.
• Supports various loan types including personal, SME, and retail.
• Offers multi-channel loan application intake and processing.

Things I didn’t like:

• Limited borrower-facing features compared to some competitors.
• Some users report occasional system performance issues.
• Lacks advanced automation features found in larger platforms.

Also read: 15 Finance Companies For Small Business Loans with Bad Credit score

10. Encompass360

Encompass360, offered through ICE Mortgage Technology, is a specific mortgage industry end-to-end mortgage solution that allows you to attract more customers and to originate home loans, and to sell and buy loans faster–all through the same software of records.

Encompass360 offers lenders of all sizes access to loan closing and origination, and everything else in between. With features like built-in compliance and paperless document management and new-generation data security, encompass360 guarantees that lenders and borrowers are well-prepared to navigate the process with confidence and remain secure.

Key Features:

• Provides end-to-end mortgage loan origination and servicing solutions.
• Includes automated decisioning, credit scoring, and compliance tools.
• Supports various loan types including conventional, FHA, and VA.

Things I didn’t like:

• Higher pricing tier may be prohibitive for small lenders.
• Implementation may require significant time and resources.
• Complex interface may require extensive training.

Conclusion

Selecting the best loan origination software is an essential choice for any loan provider. When you look at the above factors, it is possible to select the LOS that helps you streamline the loan process, lower expenses, and improve customer experience.

FAQs: Loan Origination Software