Empower Loan Origination Software Solutions to Meet the Needs of Today’s Lenders

Honor Donnie  |  October 1, 2020   |  Credit & Lending  


Today’s lenders have had to rapidly refocus their strategies since the beginning of 2020 and the onset of the COVID-19 pandemic. While rising unemployment and business collapse will cause an increase in non-performing loans, there are some options readily available to help banks weather the storm. For banks and lenders to navigate business recovery, they need powerful loan origination software with the right tools to capitalize on revenue opportunities and minimize negative business impacts. 

Automated mortgage lending compliance

Low interest rates have caused mortgage lending activity to surge in 2020. This increase in lending volume, coupled with a switch to a remote workforce, creates a unique challenge for mortgage lenders. Loan automation software that includes digital document collection for FHA/VA mortgage occupancy verification can enable staff to access data anytime, anywhere. Employing technology to replace tedious, repetitive tasks frees up individuals to perform higher-level functions and focus on improving customer satisfaction.

READ MORE >>> Nationwide mortgage lender simplifies FHA compliance with Urjanet

Improved onboarding efficiency 

The recent increase of government-backed programs has sent a record number of applications through banking systems. Programs under the CARES Act like the Paycheck Protection Program (PPP) require secure loan origination processes. In May of 2020, Bank of America sent 184,000 Payroll Protection Applications to the Small Business Administration on behalf of clients, but noted that the SBA’s manual processes led to extremely slow responses. 

To be successful, banks and lenders must have a platform that can accommodate an increase in application volume without compromising KYC/KYB compliance and onboarding processes. Enhancing onboarding processes with automation improves internal efficiency while simplifying the customer experience. 

READ MORE >>> Online Lender Streamlines PPP Loan Forgiveness with Urjanet

Accurate decisioning 

Credit risk decisioning after COVID-19 is going to require more flexibility. Extending credit throughout the recovery period will enable lenders to strengthen customer relationships and emerge even stronger. As the pool of prime borrowers facing delinquency continues to grow, identifying more creditworthy borrowers may require extending lenders’ reach to some of the 91.5 million credit invisible consumers. Within this underserved population, there are financially responsible borrowers – an untapped market that may need attention. 

Successful risk decisioning tools must be more precise and provide deeper insights for evaluating ability-to-pay.

Relying on traditional risk assessment tools has proven to be less effective given the extreme nature of the economic downturn. A recent McKinsey report highlighted the need for banks to update their credit processes through the use of alternative data sources and qualitative factors in the post-COVID era. Successful risk decisioning tools must be more precise and provide deeper insights for evaluating ability-to-pay. 

Proactive risk management

As bank branches continue to close and lending processes shift toward digital customer interactions, preventing identity fraud should be a top concern. While the impacts of the pandemic are still coming to fruition, lenders can start with proactive action now. Banks and lenders should get ahead of minimizing risk with a multilayered approach to identifying valid applications. Tools that enable automatic ongoing account monitoring will support the ability to proactively identify deteriorating credit and overall portfolio risk.  

Empower loan origination software with Urjanet

Competitive loan origination software applications should incorporate solutions that lenders need to be successful given the current market conditions. With digital access to utility payment data from Urjanet, you can be fully equipped to support your customers during and after the pandemic. Empower loan origination software solutions with authoritative data so you can adapt your offering to what lenders need most.

Need some help accessing alternative data for your LOS solution? We’re here to help – contact us today to learn more.



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About Honor Donnie

Honor Donnie is a Marketing Intern at Urjanet, with a passion for content creation. When she’s not at Urjanet, she can be found studying Political Science at Clark Atlanta University.

Tags   Financial Services   |   KYC   |   Lending   |   Risk Assessment   |