Are you searching for a Loan Origination System (LOS) vendor to streamline and automate your mortgage loan process? It can feel more difficult than finding the right employee.

Platform number one promises reliability. Platform number two advertises a better pricing structure—platform three touts customization. The information is overwhelming— but don’t panic! We're here to help you find the best LOS vendor that fits your business needs.

The following nine questions will help you evaluate loan origination system vendors.

9 Questions to Ask Your Loan Origination System Vendor

At first glance, each LOS system may seem equally effective. But minor details can affect your bottom line when optimizing your loan process and creating a positive customer experience.

Consider these nine questions to make the best choice:

1. How Is the Loan Origination System (LOS) Hosted?

You have three options for hosting: web-based, cloud-based, and SaaS-based. Each has its benefits and drawbacks.

A web-based LOS requires an internet connection, but you can access it anywhere. Cloud-based systems are hosted on virtual servers, so they don’t take up storage space on your computer and are less costly than their SaaS-based counterparts. Finally, a SaaS-based system is an excellent option for more customization and scalability.

2. Is the LOS System Configurable?

Loan origination systems are only helpful if configurable with your current pipeline and workflow. Altering your system may not be possible, and if it is, costs will increase. Look for LOS features such as configurable user interface, workflow automation, customizable reports, and data mapping options.

3. Is the System Secure for Customer Data?

Data security protects business and customer interests. For example, vendors should demonstrate compliance with industry regulations like the Home Mortgage Disclosure Act (HMDA) and Gramm-Leach-Bliley Act (GLBA). The system also needs automatic updates when regulations are changed and introduced.

Neglecting to have a secure system could lead to impossible costs. Not only will you face hefty fines from regulators, but customers may hesitate to do business with you.

4. Is the Solution Scalable?

Think about your company's future when looking at LOS systems. Scaling up or down to accommodate spikes or drops in origination volume should be quick and easy. If it's not, your efficiency will halt just as your business begins to flourish. Crucially, you need a LOS to keep processing speeds and wait times low as business increases.

Explore what the Sonar's LOS software can do for your business.

5. Is the LOS System Intuitive & User-Friendly?

The goal of any loan origination system is to reduce lender workload. An overly complicated LOS defeats the purpose. If you have to spend hours on a tutorial to understand the system or your team is confused about where to go next, you’re not getting the most out of your LOS.

To ensure that staff finds navigation easy, look for features such as directing users to the following steps, predictable and responsive user interface (UI) elements, and efficiency with minimum effort from the user.

6. How Does the LOS Vendor Integrate with Third-Party Apps?

No two lenders are alike, and neither is their origination process. You want to choose a LOS that can be adapted with third-party applications, so you can customize your system without replacing it entirely.

Third-party apps that you may want to use include but are not limited to credit report providers, appraisal management companies, and desktop underwriters. Your LOS solution must interact with third-party databases and build the imported data into a comprehensive profile.

7. Does the LOS System Provide End-to-End Support?

Before you make a selection, your vendor must demonstrate end-to-end support. A LOS should track each loan process step, from application to funding. Data should flow seamlessly between departments and applications so customer files are accurate and up-to-date.

If the system can only handle part of the process, it will be impossible to maximize your time. Modern lenders need technology to stay competitive. A partially optimized mortgaged pipeline will cost you more in the long run.

Ready to transform your mortgage operations? Schedule a demo of the world's first mortgage experience platform now!

8. How Does the LOS System Handle Pricing?

Integrating product pricing into a LOS lets customers get accurate prices and fees within seconds of submitting a loan request. The fast pricing keeps customers happy and boosts your reputation.

LOS systems without integrated pricing capabilities trigger delays for loan officers and underwriters. The delay may not ruin your business, but it will ensure that some of your competitors are more efficient.

At Sonar, our loan origination system integrates with a product pricing engine (PPE) that supports pricing from 75+ lenders, creating a proper end-to-end solution.

9. Does the LOS System Also Include POS?

Having both LOS and Point of Sale (POS) systems is essential. A POS offers customers a more effortless loan origination experience by providing an intuitive interface and personalized rates with no manual input from your team.

Sonar takes it further by offering LOS and POS in a single system. This integration makes accessing all their data easier for loan officers, underwriters, and customers without switching between programs. Even compliance becomes easier as data can flow between the two seamlessly with no chance of human error.

Choosing between mortgage loan origination system vendors isn’t easy. However, considering your needs and assessing potential vendors is worth it for a smooth loan process and an improved customer experience.

Consider factors such as configurability, security, scalability, and pricing when choosing a LOS. Also, select a vendor that offers integrated POS capabilities and end-to-end support for the best possible outcomes.

Why Brokers & Lenders Choose Sonar for their LOS & POS Vendor

As an innovative SaaS solution in the mortgage industry, Sonar stands out with our integrated POS and pricing engine, 100% mobile-first capabilities, and fully configurable technology that is automated for compliance. Sonar’s unique approach to loan origination has made us a preferred partner to brokers and lenders nationwide.

If you have any more questions regarding a LOS system and how it can help your business, please don't hesitate to reach out. We're here to help.

Position yourself for loan origination success with Sonar's cutting-edge system. Schedule a demo today!