Automation & technology

Why the right LOS is game-changing for your mortgage business


During a turbulent mortgage market, assessing your key performance indicators and the health of your operations is how mortgage lenders can set themselves up for success now and in the future. In particular, looking at how your loan origination system (LOS) is maximizing efficiency, providing returns on investments and ultimately, helping you win business over competitors is a great place to start.

Why? Because your LOS should serve as the central hub of the overall tech stack, allowing you to orchestrate your entire business from a single system of record. Below are six LOS essentials to keep in mind when considering the right mortgage technology platform.

Multiple points of access drives innovation across your workflow

From cost and time savings to enhanced data security, there are significant benefits to leveraging a web-based LOS. But it’s important to keep in mind that not all cloud-based solutions are created equal. Your LOS platform should support and integrate with every aspect of your business. By using a unified single system of record with fully interoperable functionalities and multiple points of access, you can streamline your data and create consistent workflows for both your staff and your borrowers. As a cloud-based SaaS platform, Encompass® by ICE Mortgage Technology® enables customers to seamlessly integrate solutions within their technology stack, creating a fully customizable experience from the customer’s initial point of thought through investor delivery. Encompass also maximizes the user experience with frequent software enhancements that require little to no lender involvement.

Built-in compliance capabilities within your LOS save you time and money

With hundreds of state and federal laws and regulators to consider, finding ways to easily manage compliance and reduce risk is key. Using an LOS with built-in compliance capabilities does more than just reduce your risk, it also saves you time and money. According to a recent MarketWise study, mortgage lenders who leverage automated compliance testing within their workflow save an average of 20 minutes and $14 per loan. Your technology partner should be regularly consulting with compliance, legal and industry experts to keep up with the evolving regulatory environment. For more insight, this article by ICE Mortgage Technology’s Deputy Chief Compliance Officer & Senior Regulatory Counsel, Heather Clark can help you confidently build an effective compliance program.

Having a flexible LOS allows you to leverage best-of-breed solutions

By selecting an extensible LOS, you can expand the platform’s capabilities through both developer APIs and integrations with industry-leading mortgage service providers. This allows you to customize and automate just about any aspect of your workflow. With an LOS that also offers a robust and trusted partner network natively built into your application, you’re better able to connect with business-critical providers without any integration work required on your end. In fact, ICE recently conducted a study that found customers saved $21 per loan by handling employment, income and asset verification within their system of record.

Bringing home equity programs into your system of record helps you scale

A fully configurable LOS allows you to adjust your business to match the market. Your ability to configure workflows, create business rules and leverage native integrations, without any custom development required, is key to broadening your prospect pool and capitalizing on borrower trends. In recent years, lenders who had an LOS in place that could also support home equity products and quickly scale to meet an increase of equity lending demand were able to take advantage of more opportunities. Encompass is the only solution on the market that can be easily configured without any development efforts to support a user’s unique products and workflows for each of their channels, including retail, consumer direct, HELOC, wholesale and correspondent. In fact, customers who offer HELOC and home equity programs through Encompass save an average of 18 minutes and $13 per loan.

Data-driven decisions make the most impact on your business

Automation is a valuable way to keep costs down and streamline your workflow, but if you don’t have high quality data behind it, you won’t get the results you’re looking for. With a data-driven LOS, you can confidently embrace automation across your lending processes to simplify processes and reduce manual tasks. More importantly, by automating tasks that don’t require your team’s expertise, they’ll have more time to focus on important activities to help drive your bottom line. With Encompass, you can leverage a data-driven LOS with built-in reporting and business insights tools to help you analyze performance and make smarter, faster business decisions. Want to learn more? Watch this video to discover how you can leverage data for repeat and referral success.

When selecting an LOS, you are choosing a partnership

When it comes to selecting the right LOS for your business, you need to examine what type of partner your LOS provider will be and choose the provider focused on helping you succeed. This starts with implementation. And after implementation, you want a technology partner who will continue to help you maximize your ROI and keep everything running smoothly as your business grows. Backed by the strength of ICE, Encompass delivers an unmatched record of supporting customers with expert-led implementation services, as well as training and informational resources designed to expedite time to value. Click here to learn more about how we are helping customers see lasting ROI with Encompass.

See what Encompass can do for you

Encompass is powered by the industry’s most robust and trusted data set, as well as a comprehensive suite of APIs that create endless possibilities. What’s more, the additional features you need to implement as you scale are seamlessly integrated within Encompass, including multiple points of access, compliance, flexibility, document and automation solutions, support for equity lending, task management, and much more. Serving as a gateway to the industry’s largest network of partners, Encompass also connects you to business-critical partners without any integration work required on your end. Encompass enables you to manage the entire lending workflow within one system of record from the customer’s initial point of thought through investor delivery, and is solidly backed by the stability and security of ICE. With so much included in this end-to-end, multi-channel technology stack, you can feel confident that you're investing in an LOS that will deliver a return on your investment for many loans to come.

Learn more

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