|
|||
Home |
Loan Origination Software
There are perhaps 25 Loan Origination Software (LOS)
systems in existence. Two companies hold roughly 90% of the market share:
1) Ellie Mae's Encompass; and 2) Calyx's Point. Two other companies deserve
mention: 1) Byte - a rock solid and well engineered system running on SQL; and
2) FICS - a decendent from the Mainframe days. The newest LOS is
MortgageBot which, until recently was not an LOS but was a very slick front end
or web presence for originators and that had virtually no reporting or
compliance capability. You can see a
list of firms Fannie Mae recognizes at: https://www.fanniemae.com/singlefamily/authorized-los-integration-vendors As mortgage
lending gets more and more complex and the risk or cost of making an error
grows exponentionally every day, it has become imperative that you have a LOS
that you can use to control the flow of your business and prevent mistakes. You
do that by setting up business rules in your LOS. Because of your
rules, talented and web savvy MLOs will work to create systems that are
much easier to use and go around your system and your rules. In today's
environment, you need to manage that risk by understanding thoroughly what
their system does and closely monitor it, or prevent them from using such a
system. That was my impression of MortgageBot (before they declarired it
an LOS). A good LOS does much more than print the forms you use
for processing, such as VOE, VOD, 1003, and 1008. It also prints out your
disclosures, both the promulgated forms and the ones you and your
attorney assembled. A good LOS is also a Document Management System,
where all your original documents are stored and sorted in your computer in
such a way that you can print out your file in a different order than it was
scanned in and you can print select documents for your Warehouse, others for
your Attorney and still others when you ship the file to its investor. This year,
it became necessary to use your LOS as a calendar management system, to track
the legal Application Date and manage the number of days until initial disclosures
go out and then manage the calendar for mail time and then manage the calendar
for Change of Circumstances or customer requested changes and finally the
Closing Disclosure wait time. You don't need a computer to manage the
calendar on one or two files but on thirty of yours plus all your loan
officer's; you can't manage that in your head or on paper and the risk is
too great to trust any employee. Your LOS
must be managed as a single database. In
other words, it is almost pointless to have an LOS system if each branch is
not connected to your home office system.
You can’t even begin to run reports unless all the data is in one place. If you can’t run reports, you can’t manage
compliance. If you can’t run reports,
you can’t manage your staff. I don’t
know how you can run a business, especially one with remote offices, without
frequent (daily) reports. Click the following to read my personal opinions of the systems I’ve mentioned above: Encompass Point Byte FICS MortgageBot FloifyFannie Mae's list of vendors |
||
(c)
2015 - Everett Ives and Associates |