Mortgage Software Replaces Manual Processes
What is mortgage software?
Mortgage computer programs consist, of both cloud and on-premise, designed to replace traditionally manual operations that were historically handled by individuals during the origination or servicing of mortgages.
When it comes to origination, mortgage software comes in a variety of packages depending on the functionality desired. There are mortgage process automation solutions that is specifically designed to aid loan officers in developing business and demand generation, software to enhance the customer experience of loan borrowers, and there is also software that was created to streamline the replicable and time-consuming portions of the origination process.
This includes activities such as:
- Client relationship management
- Borrower document collection and organization
- Loan file management and storage
- Loan status and milestone updates
- Asset, income, employment, and credit verifications
- Disclosure delivery and signing
- Pricing and product fit determination
With the rise of digital and mobile business transactions, some of the most common pieces of mortgage software programs for loan officers involve catering to the borrower's experience. As consumer preferences shift and attention spans shrink, the need for more transparent processes and communication has moved to the forefront.
Types of Mortgage Software
The mortgage industry, traditionally dominated by manual processes, has witnessed significant change due to the introduction of specialized software. These digital tools address various aspects of the mortgage lifecycle, from tracking and processing to brokerage services.
Mortgage Tracking Software:
An integral component in the mortgage sector, this software aids both mortgage lenders and borrowers in overseeing the progress of a mortgage application. By ensuring all necessary documentation and deadlines are met, it promotes transparency and real-time monitoring.
Loan Servicing Software:
Where the traditional approach to mortgage loan processing was laden with paperwork and prone to errors, software for mortgage loan processing automates and streamlines many stages. These tools expedite tasks ranging from application verification to underwriting and final approval.
Mortgage Broker Platform:
Serving as brokers between borrowers and lenders, mortgage brokers have found immense value in specialized platforms. These tools allow brokers to efficiently connect with multiple lenders, manage client data, and ensure prompt loan closures.
Loan Origination Software (LOS):
LOS systems assist in every step, from application intake to the final credit decision, ensuring consistent outcomes through the lending process.
Tailored CRM software for the mortgage sector aids in managing interactions with clients and prospects, aiding communication, data entry, and tracking all interactions.
Mortgage Servicing Platforms:
These platforms are essential for post-closing tasks like payment processing and escrow management, ensuring smooth loan servicing and compliance.
Mortgage Accounting Software:
Crucial for mortgage lending, this software ensures accurate financial reporting, especially concerning monthly mortgage payments. By integrating with other mortgage tools, it offers comprehensive financial oversight and provides pivotal insights to lenders.
Mortgage calculators, like the popular "Mortgage Wizard," are pivotal in today's home financing landscape. They provide users with quick insights into loan costs, interest rates, and monthly payments, translating complex mortgage data into digestible figures, and aiding informed decisions.
Compliance Management Tools:
Given the regulatory nature of the mortgage industry, these software solutions ensure adherence to standards, mitigating risks of violations.
End-to-end digital mortgage Software
There is a third type of mortgage software grabbing a lot of attention these days, which is the end-to-end digital mortgage. In this form, the software is designed to replicate the entire loan origination process from application to close without the need for human intervention.
Quicken Loans’ Rocket Mortgage is the banner carrier for this type of mortgage software and it has become increasingly popular with startup companies trying to “disrupt” the real estate financing space.
Along those same lines, new mortgage industry software has been developed to increase the efficiency of loan officers and their teams in order to provide a more streamlined and organized workflow. This has increased the productivity of loan officers, while also serving to speed up time-to-close and keep loan origination expenses manageable.