A modern LOS provider will make it easy for lenders to choose the partner and solution they want to integrate with.
Many of the technological tools we have used over the years have been interim technologies that were simply paving the way for future advancements. The digital camera is a case in point. It took years to graduate from film cameras to electronic sensors, but a relatively short time for the digital camera to get built into the cell phone.
We’ve seen the same thing happen in our industry, most recently with Point of Sale tools. When they hit the market, largely in response to a new threat from fintech firms that grew out of mobile software development shops, these standalone tools filled an important gap in our loan origination process. Today, there are many modern loan origination systems that have this functionality built in.
But there are still tools that complement the modern LOS very well, and we think the LOS provider should make it easy for the lender to choose the partner and solution they want to integrate with.
Modern APIs have mostly done away with the need for developers to build all manner of strange functionality into their LOSs, as the lender now has the power to simply make function calls out to the new tools they want to try. Of all of the tools that we can integrate with through our set of modern APIs, we have found a few that lenders find very useful.
The first of these is professional document management. Unlike most lenders, Mortgage Cadence manages our own document engine. But document ingestion and classification as well as extracting data off of documents is really important and often requires a separate solution. There are a number of really good tools available on the market today and any of them can be integrated into the modern LOS.
A second essential technology that many lenders are integrating with their LOS is Compliance and Regulation monitoring tech. These tools automate much of the QA/QC work that lenders must complete as they prepare their loans for sale into the secondary market. These platforms are backed by experienced compliance professionals and have become essential tools for every lender.
The third is actually a class of tools that all provide borrower or property source data and verification. Verifying the data used to underwrite loans will always be an important function and one that can be simplified with technologies that are now easy to integrate with the LOS.
What ties all of these tools together is that they are backed by professional teams who are constantly improving their tools and providing human expertise. If such human interaction is not required to provide a given functionality, you can expect it to be built into your modern LOS, either already or in the near future.
By Joe Camerieri, EVP, Client Account Management at Mortgage Cadence
Follow us on LinkedIn to be notified when our next article is released.