Mortgage Point-of-Sale: What Is It, and Why You Should Have One
As the cost to originate a mortgage has been steadily climbing for years, the mortgage industry has been seeking systems that allow lenders to increase operational efficiency, increase per loan originated margins, and increase market share by offering solutions that cater to a digitally empowered borrower. To make gains in these areas, lenders have turned to a new segment in mortgage technology: mortgage point-of-sale software (POS).
Originators know they’ll need an LOS to serve as their backend fulfillment center.
And a qualitymortgage CRMhelps mortgage professionals organize their customer data and structure their sales and marketing activities.
But with a modern mortgage POS integrated into their workflow, loan originators are able to cut several days off the loan cycle and reduce overhead by getting more daily production from their back-office staff.
And they can do this while offering homebuyers a more streamlined, transparent, and technologically-enabled process when securing a loan.
What ExactlyISMortgage Point-of-Sale Software?
Mortgage point-of-sale software is the one system in an LOs software stack that should interface with clients during the origination process.
When borrowers refer to having a “borrower portal” “mortgage portal” or “client portal”, they’re really talking about the front-end of your mortgage POS system.
In short, mortgage point-of-sale software provides borrowers with the tools that they need to do business with an LO digitally, while also allowing the LO to automate and optimize their back-office processes for a more efficient origination process.
Why Do LOs Need a Mortgage POS?
There is a clear movement in the industry to adopt mortgage point-of-sale systems to provide a borrowing experience that meets modern expectations.
It is rapidly becoming “table stakes”, or a basic necessity in the current environment.
We’ve written about thechanging demographics of homebuyers(Millennials!), the growingimportance of a mobile-friendly platform, and thebusiness virtues of mortgage software. All of which would confirm the need for this type of software.
If you need more proof that mortgage point-of-sale software is being viewed as a critical piece of a modern lending process and consumer borrowing experience, take a look at how about big banks such as Wells Fargo, Chase, and US Bancorp are inking deals with tech partners to provide such a service. There’s also nonbank lenders such as Bay Equity, Movement Mortgage, and Guild Mortgage partnering up to launch their mortgage point-of-sale systems.
Quicken Loans? They made their name (and LOTS of money) by being one of the first to offer the type of mortgage point-of-sale system that digitally-inclined borrowers were seeking.
Overall, this movement and embracement of the mortgage POS is agoodthing for the industry. It pushes technology vendors to continue to update and improve the solutions they provide.
As the mortgage world changes, vendors must tailor their solutions to the needs of their customers, mortgage lenders and loan originators like you.
What Are the Components of Modern Mortgage Point-of-Sale Software?
Mortgage POS software should include everything a loan originator needs to offer their clients and referral partners a modern, web-based borrowing experience.
Common components include:
- Integrations with industry-standard solutions
- Pipeline management and oversight
- Compliance controls and configurations
- Branding customizations
Beyond those core features, the leading mortgage point-of-sale solutions out there will pack a ton of additional value through unique offerings and best-of-breed integrations.
It’s clear now that borrowersexpectthe type of experience that mortgage point-of-sale software allows them to have, and lenders and originatorsneedthe type of back-office process efficiency in order to maximize loan profitability.
The modern, digital mortgage point-of-sale is no longer the future. It’s already here.