Best Mortgage LOS Software in 2022

Along with your mortgage CRM, there are systems that you will need to ensure consistent growth year over year.  A mortgage Loan Origination System (LOS) is one such platform that can assist you and your team from application to post-closing.  

An LOS software manages the essential steps that must be completed for new loans, as well as refinances.  This includes the origination, fulfillment, pricing and eligibility and document management.  

As a mortgage professional, the biggest challenge is managing your contacts throughout these steps, which is why Surefire CRM has made integrating with your LOS software and other mortgage software our top priority. 

1. Understanding what an LOS software can do
2. Essential functions of an LOS software
3. Key features to look for when implementing mortgage software 
4. Systems you need to integrate with your LOS software

A Loan Origination System (LOS) is a mortgage software platform that takes a mortgage transaction from origination to post-closing.  

It is best to think of your LOS software as a lock system in a canal, opening the gates to the next phase once it has all of the necessary information to proceed.  The data can range from basic borrower contact information to confidential information, which must be stored securely.  

Although every lender has their own loan fulfillment process, they usually follow the same principles and procedures. With these methods, LOS software can provide mortgage lenders with customizable support systems for every loan’s origination and fulfillment.

The two key functions of any LOS software are origination and fulfillment of a loan. Origination begins at the start of the loan process.  This includes some functionality for point of sale (POS), management of the loan application and pre-qualification. Fulfillment takes the information gained during the origination phase and guides the borrower through the steps of the appraisal, underwriting, closing, funding and post-closing.

The start of any loan begins at the application stage.  First, the home buyer learns whether their current credit rating and savings qualify them to purchase their prospective home.  LOS software takes this information from the POS and pulls it into the pricing engine. Once completed, the borrower can choose between different lending programs they qualify for, concluding with their pre-approval letter.

Once pre-approval is given to the buyer and both parties sign the purchase contract, the LOS software kicks into high gear processing the appraisal order. With the independent estimate of the property’s value, the mortgage underwriter can process the loan with all necessary credit reports, title searches and tax transcripts.  Underwriting is driven by information, which means that you’ll need the best mortgage CRM that can send out requests as quickly as possible.

When all documentation is prepared, the clear to close is given with all of the necessary documentation presented for the borrower to sign, including the all-important closing disclosure document. Documentation is key during this stage, and your LOS software needs to keep you compliant.

At any point in these stages, a piece of the dozens of documents can come up missing, data points may be missed or a deadline can be pushed back.  Without the proper support from your LOS software, unexpected delays can reduce productivity and harm your ROI.

There are many software vendors available to mortgage professionals. During your discovery phase prior to implementing any LOS software, there are key factors that you’ll need to consider.  We’ve already discussed some of these features, such as mortgage CRM compatibility, document management and POS integrations.

One of the other key features to consider will be compliance.  Your LOS software needs to follow federal and state laws, which doesn’t just apply to data security regulations. For example, your loan estimate and closing disclosure need to match one another to remain compliant.

While LOS software provides origination and fulfillment management to help LOs manage their pipeline, these systems are not designed for external communications.

This is why the best mortgage CRM systems like Surefire work with your LOS software to effectively manage your mortgage pipeline. When these systems work in tandem, your communications with internal team members, borrowers, agents and other third-party service providers will be optimized, giving you and your team members the ability to close more loans.

When considering the loan origination system you’ll use to optimize your lending team, it is important to consider the value they bring to your current systems. Below is a list of the best mortgage LOS software companies.

Whether you are a smaller broker or large bank, a loan origination system is a significant investment in a lender’s tech stack. The process for finding the right LOS should include a review of the processes and procedures that make up your lending operation. The information used by your team will affect the level of customization you will need.