If you’re in the business of lending money, your loan software for lenders must be able to handle all of the different applications and systems that are part of the loan process. The software should allow you to access various loans and use them as needed. It should also provide you with information on a variety of topics such as loan amounts, loan payments and other pertinent information. Most importantly, it should be able to interact with the various banking networks and financial institutions to ensure all your information is secure.
Lenders who want the best loan origination loan software for lenders software solutions available need to be sure that they purchase the software from reputable sources. For example, top names in the loan industry such as Citibank, Experian and Trans Union all offer loan origination software solutions. These programs are designed to meet the needs of loan lenders and are much more advanced than standard desktop computer programs. In addition, they are offered at affordable prices so that ordinary consumers can afford them.
Good loan software for lenders should also include the tools to create efficient payment hierarchies. Hierarchical payment systems allow the lender to effectively allocate funds based on the amount of loaned money versus the number of accounts a customer has. These systems can be used for things like loan closing, loan servicing, loan modification requests and other uses. For example, a loan management system could create three payment hierarchy systems, allowing the lender to calculate payment costs and allocate funds accordingly.
Loan lifecycle management is another important feature of good loan software for lenders. Lenders who have an effective lifecycle management system in place are able to better assess the risks associated with certain types of loans and the ability to retain and manage these loans. It is important for a loan management system to accurately calculate service fees and associated costs, as well as provide a reasonable estimate of the life of the loan. It is also important for the life cycle assessment to provide for the possible extension and/or replacement of parts or services under the contract if such a thing becomes necessary. Finally, the lifecycle assessment should provide for the calculation of a firm payback time based on a realistic projection of the loan’s repayment schedule over its lifespan.
Workflows for different stages of a loan process should also be included. A good example of a workflow is the work flow used by a manual loan processor, when entering information into the data base. Workflows can be implemented in a number of different ways, from a series of fixed worksheets that describe the stages of processing to a computer program. Workflows can be especially useful for automated processes that require the entry of multiple pieces of information to complete a particular task. Good loan software for lenders will be able to define workflows for any type of processing that occurs throughout the lifecycle management system.
Good loan software for lenders will also be able to manage the loan portfolio flow by providing ways to prioritize loans in terms of overall cost effectiveness. There are two primary ways to prioritize loans in most lending situations. One option is to prioritize according to payment history. The other option is to prioritize based on risk level. In general, the less risky a loan is, the more likely it will be prioritized in the overall flow of transactions.
In addition, good loan management systems should include options for loan origination. Depending on the volume and complexity of a given loan, lenders may need a dedicated team to approve or reject loan proposals. Good loan management software for lenders will allow those teams to define loan requirements for their specific situations. Depending on the volume of loan requests, lenders may also benefit from dedicated customer service teams that can help with loan review and approval processes.
Finally, a good loan management software for lenders should also provide financial analytics tools such as sales and cost trend analysis, customer database management and integration with other business applications. Good analytics tools will allow lenders to get closer to the market needs of borrowers. This kind of functionality will help lenders identify customer demand, which will lead to more loan approvals and more revenue for their business.