As the cost to originate a mortgage has been steadily climbing for years, the mortgage industry has been rapidly moving to adopt technology systems that allow lenders to increase operational efficiency and minimize margin compression.
With these innovative systems 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.
With this adoption has also come more definition. Where in the origination process do systems need to have an impact in order to create a positive return on investment?
Originators know they’ll need an LOS, or a collection of services acting as an LOS, to serve as their backend fulfillment center.
A quality mortgage CRM helps professionals organize their customer data and structure their sales and marketing activities.
The new kid on the block? A mortgage point-of-sale system.
What Exactly IS Mortgage Point-of-Sale Software?
The mortgage point-of-sale system is the one piece of your software stack as a loan originator that should actually interface with clients during the origination process.
It provides them with what they need to transact business with you digitally, from loan application through disclosure signing and closing.
When clients refer to having a “borrower portal” “mortgage portal” or “client portal”, they’re really talking about the front-end of your mortgage point-of-sale.
The advantages for borrowers are myriad, but loan originators also generate a significant return because the system allows them to automate and optimize their back-office processes.
The loan application gets completed more often and more accurately. Supporting documentation is submitted faster and organized in a way that makes it incredibly easy to see exactly where each loan file in the pipeline stands. Loan status updates and reminders are all coordinated by the system, saving hours of calls and emails.
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 the changing demographics of homebuyers (Millennials!), the growing importance of a mobile-friendly platform, and the business 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 a good thing 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?
A mortgage POS system should include everything a loan originator needs to offer its clients 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 more unique offerings and integrations.
It’s clear now that borrowers expect the type of experience that mortgage point-of-sale software allows them to have, and lenders and originators need the type of back-office process efficiency that the same system affords them.
The modern, digital mortgage point-of-sale is no longer the future. It’s already here.