There are many intricate procedures in the loan processing system, which is why the loan origination process takes so long. Lenders still have trouble processing documents, even with a sophisticated loan origination system. It takes effort and time to determine whether or not a candidate is telling the truth in their application. Customer information entered manually can sometimes be inaccurate. To remedy this issue, loan document software must be implemented. The credit department can now make use of sophisticated software programs designed for this purpose. If your program is efficient, it will speed up the loan origination process and prevent any mathematical errors. There are a number of considerations that should be made before settling on a piece of software.
When deciding on Loan Documentation Software, consider the following:
As soon as a lead is received by the financial institution, the loan servicing software solution begins tracking it, offering staff members a comprehensive overview of the pipeline. It achieves this by digitally recording data that was previously stored only on in-house computers or on paper. Financial institutions can benefit greatly from the digital shift brought about by loan documentation software. It simplifies operations and yields a high return on investment (ROI) in a short amount of time.
All borrowers, collateral, and loan kinds can be accommodated by a single loan document system, which streamlines the processing of all forms of digital transactions.
Ability to generate loan applications
- Loan originators need to export sophisticated excel computations into word/PDF documents; hence this functionality is essential for creating these documents.
- The data found in LOS, CRM, and other front-end platforms can be used by loan originators to create comprehensive loan document packages.
- The loan package can be tailored to your specific needs with a commitment letter, detailed borrowing resolutions, loan agreements, guarantees, promissory notes, and security instruments.
- Avoid using paper by linking your loan documentation software with electronic signature service.
This allows lenders to produce higher-quality loan files in less time, which improves the borrowers’ experience and streamlines the back-end loan-production process.
It’s crucial to get the correct loan documentation software. The most frequent method for automating the production of loan documents is to hardcode the templates into the main system. It’s hard on the wallet and requires regular upkeep. In addition, document templates are frequently updated, necessitating changes to the corresponding code. As a result, more demands will be placed on already overburdened IT services by business customers.
Tips for Choosing an Effective Loan Document Management System
- Try to find a program that includes auto-fill options for your forms. Eliminating the need to manually rewrite the material in forms, whether it’s internal data, operational data, underwriter notes, or anything else, would save time and effort.
- Can the form be pre-filled by the program? To hasten the closing process, this function prepopulates a borrower’s data. Furthermore, manual workflow poses a high risk of human error, making automation in document management essential.
- Loan document software should also have the ability for electronic signatures. Having an e-signature solution already integrated into your document management system is crucial to achieving a paperless workflow.
- Automatic creation of a credit memo and a client summary is a prerequisite for this program. The time it takes to get a loan approved can be cut in half by automating the client documents you give to your credit committee.
Final Thoughts
The solution aids in maintaining loan compliance by alerting the lender to any missing or incomplete paperwork.
It also triggers retention after a payback and alerts loan officers to any additional documentation that has to be collected. The organization’s reputation and financial stability are protected.
A separate benefit of this system is that it provides auditors with a comprehensive overview of each loan. Loan compliance, gathered documents, reasons for missing documents, checklist items completed, and reasons for checklist items not completed may all be conveniently viewed in the loan document management system.
Financial institutions may boost staff productivity and foster stronger client relationships with a loan document tracking solution.
