Mortgage Software for Mortgage Bankers

Is Your Web-Based Loan Origination System Truly SaaS? Part 1

Posted by Frank Bocchino on Thu, Apr 24, 2014

 jp kelly

MortgageOrb recently interviewed JP Kelly, President of OpenClose to learn more about the changes and challenges currently facing LOS providers.

This is the first of a three-part series

Q: The LOS space has seen a significant shift in the past couple of years toward lenders investing in end-to-end platforms. Why is this?

Kelly: The old end-to-end versus best-of-breed debate has been going on for years, and you’ll get a hard stance position from respective vendors operating on each side of the fence. Best-of-breed vendors will always state that that no end-to-end vendor can do everything as well as they can. End-to-end vendors will say that they handle the entire lending process efficiently and that the best-of-breed approach muddies the waters. There are degrees of merit to both.

Our position is that there are some best-of-breed vendors that are so specialized at what they do, that an end-to-end LOS provider would be remiss if they attempted to engineer and support certain functions of the lending process that are completely out of their wheelhouse. A couple examples are disclosure compliance, valuation management and fraud protection, to name a few. These types of functions assume huge amounts of responsibility and liability. The sheer compliance risk involved in these areas and needed robustness of the solutions is better suited for a partnership and integration. In this regard, end-to-end LOS providers need to be very selective about the specialized vendors they integrate with and must ensure that it is a truly seamless interface that does not disrupt workflows.

Another notable difference is a best-of-breed vendor’s cost and time factor to develop and maintain integrations. A really good integration is no easy undertaking. And maintaining it is a whole other challenge. New software versions and updates are rolled out all the time. Developing too many integrations raises the possibility that something will break.

One trend that emerged in recent years is technology firms that simply acquire other technologies in an effort to create an end-to-end platform. But at the end of the day, these are still disparate technologies that are pieced together by multiple solutions to establish an all-in-one solution as opposed to actually engineering it from the ground up. That said, the solution may technically qualify as an "end-to-end;" however, it isn’t designed by a single vendor, and it oftentimes uses multiple databases, and has feeble pairings of technology and rough workflows.

Topics: Loan Origination software, Loan Origination system, Mortgage Banking Software, loan software

Your Loan Software Should Be Easy to Use. This Easy.

Posted by Frank Bocchino on Fri, Sep 27, 2013

Some LOS vendors would have you believe that having a comprehensive solution means a complicatedsolution. It's simply not true. Nor are cramped screens, non-compliance and 1980s technology "necessary evils."

Lenders who use OpenClose get a simple solution to their complex  banking operations. It's a better way to think about the loan process where everything you need is securely at your fingertips.

OpenClose is all Web-based, proven, and integrates faster than any comparable system. 

Need help finding a new loan management system? Read our eBook!

 

Download our whitepaper

Topics: Loan Origination software, Loan Origination system, Loan Origination, loan software

Mortgage Banking Round Up from OpenClose loan software

Posted by Frank Bocchino on Thu, Oct 25, 2012
  • According to  Freddie Mac’s latest survey Mortgage rates grew slightly  from their recent record lows, with the average interest on a 30-year fixed-rate loan rising from 3.37% last week to 3.41%.
  • In Washington, the Federal Reserve said it will continue buying $40 billion in mortgage-backed securities each month until the labor market improves substantially as the central bank cited elevated unemployment rates.
     
  • In New York, federal prosecutors accused Bank of America of defrauding  government-backed mortgage agencies by churning out loans at a rapid pace without proper controls that it says was carried out by its Countrywide Financial unit.
Want fresh mortgage and market news streamed to your customers? Ask us about our mortgage websites amd loan software.

Topics: Mortgage Software, loan software, mortgage website

Fannie Mae changed guidelines -- did your loan software?

Posted by Frank Bocchino on Tue, Aug 28, 2012

[Fannie Mae logo]

This week, Fannie Mae announced that it’s tightening some of its qualification standards for home buyers and those refinancing their homes. And self-employed borrowers will be required to supply more tax returns.  And -- well you get the picture. There were several changes to its guidelines. And changes to its guidance means changes to its software too.

What do you do when changes occur that affect the loans you originate? Is you loan software vendor up to date on those changes? Better yet, can they make changes to the software easily and quickly? If it's not web-based, then the answer is probably "no."

With Web-based software like OpenClose, you can be sure that your software is always up to date with the changing times.  And no need for our customers to update the investor guidelines, as we do it for them. Since we employ ex-mortgage bankers and brokers, you can take solace in that we know exactly what those changes mean and how they impact you.

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Topics: Mortgage Software, Mortgage Loan Origination software, loan software

It's loan software: not rocket science

Posted by Frank Bocchino on Thu, Aug 16, 2012

Loan management softwareWe know that creating loans is not as simple as it used to be -- but come on.  It's not rocket science.

Some of our competitors would have you think a lending solution is overly complex.  Their loan software confuse and frustrate users. Their technology may be  “complete” (which is good) but they're so complicated you need a Masters in Physics to figure out how to pull credit, edit the 1003 or move a loan through your workflow (that's bad). Solutions need to be comprehensive, intuitive and easy or no one will use them.

OpenClose provides a complete, end-to-end Web-based loan software solution for banks, credit unions, and lenders. It's one seamlessly integrated solution, created by one vendor. The back-end functionality provides you with all that you need through post closing, while the front end is simple, intuitive and compliant for originators. It includes a custom consumer-facing website, program eligibility and pricing engine and complete document management and imaging system. All developed in-house by OpenClose. Give us a call.

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Topics: Loan Management Software, loan software

Loan Software: When does an app become a "real" app?

Posted by Kathy Olsen on Mon, Aug 06, 2012

1003

Start a mortgage loan software meeting with the question ”When is does an app become an app?” and you will have as many opinions as you have attendees.

The “application” -- and what determines when a bank has a mortgage application -- has been hotly debated for years. Even now with RESPA guidelines that suggest that a bank has a mortgage loan application when there is a borrower name, SSN, property value, loan amount, income and property address.  These are, after all, “guidelines” that still leave room for interpretation.

Some mortgage banks consider that when a lender gathers enough information to make any type of determination as to whether or not they can help the borrower, then that is in fact an application because there was enough information in the conversation to make that determination.

Other banks dictate that until a credit report is ordered, there is not enough information for there to be an official “application”.

The “application date” and what determines it dictates subsequent dates as to when disclosures are issued and when a decision is rendered. The “application date” appears to be what everything else pivots upon.

About twelve years ago, OpenClose entered the loan software business to address the nuances that separate lender workflows. Unlike other mortgage software companies, we distinguish our company by being able to adapt to the little differences that help our customers thrive.

So when in comes to the RESPA rules, we've done our best to provide a variety of ways to accommodate different interpretations of when an app is an app. For instance, OpenClose allows its bank clients to determine when – and if – an application date should auto populate to the loan. The application date can populate (1) upon fulfillment of RESPA guidelines, (2) upon ordering of credit (3) upon submission to automated underwriting (3) upon submission to underwriting (4) or manually entered by the user. 

It's little touches like this that help lenders provide their employees with a comfortable and effective working environment.

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Topics: Mortgage Software, loan software

Mortgage lending software: Ask the Tough Questions

Posted by Frank Bocchino on Fri, Aug 03, 2012
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According to a new eBook from OpenClose, lenders who regret their loan origination software selection likely asked the mortgage software companies the wrong questions. "The 6 Tough Questions to Ask Mortgage Software Companies and the 3 Mistakes Lenders Make in the Selection Process" provides mortgage bankers with insight on what to ask, how to determine the right software, and how to avoid the pitfalls of mortgage software selection.

Finding research material on loan origination systems can be difficult, however the eBook asserts that most enterprise level mortgage banking software solutions -- aside from minor nuances -- all provide the functionality a residential lender needs. So rather than concentrate on checking off software features from a list, "6 Tough Questions" encourages lenders to seek out mortgage software companies like a relationship and place greater value on such things as adaptability to change, a focus on mortgage, corporate culture compatibility, and development partnerships.

 

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Topics: mortgage lending software, mortgage software companies, loan software

It's loan management software -- not rocket science

Posted by Frank Bocchino on Tue, Jun 19, 2012

We know that creating loans is not as simple as it used to be -- but come on.  It's not rocket science.

Yes, the loan management business can be challenging. There are multiple offices, perhaps thid-party originators, and the need to view all the loans in the company pipeline, not just those in the corporate office.

And there are a lot of "hands in the pie" with each department needing their own way to manage.

But let's be honest, it's a process that's been done  for years long before the computer age. So why would so many mortgage software vendors have you think a mortgage banking solution need be overly complex?  Their technology may be  “complete” (which is good) but they're so complicated you need a Masters in Physics to figure out how to pull credit, edit the 1003 or move a loan through your workflow (that's bad). Their systems confuse and frustrate users.

Solutions need to be comprehensive, intuitive and easy or no one will use them. OpenClose provides a complete, end-to-end Web-based solution for banks, credit unions, and lenders. It's one seamlessly integrated solution, created by one vendor. The back-end functionality provides you with all that you need through post closing, while the front end is simple, intuitive and compliant for originators. It includes a custom consumer-facing website, program eligibility and pricing engine and complete document management and imaging system. All developed in-house by OpenClose.

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Topics: Loan Management Software, loan software

Loan Software: Is yours integrated or sewn together?

Posted by Frank Bocchino on Fri, Jun 01, 2012

Does your loan software look like this?

What does integrated loan software mean to you? For many vendors, it means stringing together different solutions from partner companies like a quilt. The result is a blanket solution that covers up the real issues. It also means that there are more loose threads to unravel.

At OpenClose we offer an integrated solution for pricing, loan creation, and document imaging. It's all developed in-house. 

OpenClose supplies a complete, end-to-end Web-based solution for banks, credit unions, and lenders. The back-end functionality provides you with all that you need through post closing, while the front end is easy, fast, and intuitive for borrowers and originators. It includes a
consumer-facing website and complete imaging system. All developed in-house by OpenClose. Confused by what they mean my "integrated"?

Lender Assist begins with consumer-facing website that allows prospects to see today's rates, prequalify, and push a lead into an originator's pipeline. It provides complete mortgage functionality from prequalification, creation and includes loan processing, and underwriting.

Our pricing and product engine is an accurate, affordable loan pricing engine that’s maintained by bankers and interfaces with Zillow® for lead generation. Maintained and updated throughout the day.

Finally. The completely digital loan. All forms, faxes, and scans are securely stored in borrower-specific folders. Sort, stack, and print.

Lender Assist comes with all the back end banking including secondary marketing, shipping and accounting, and post closing software.

Created on 06/07/12 at 11:57:33

Topics: Loan Origination system, Mortgage Banking Software, loan software

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