What is a loan origination software?
Loan origination is the process that occurs when a potential borrower applies for a loan from a lender and then the application undergoes several steps including capturing the loan application by the borrower, the submission of appropriate documentation, the lender’s assessment of the application and credit risk and the final funding of the loan.A Loan Origination Software digitises the loan origination process for financial institutions and other lenders, from loan application, documentation, underwriting, credit decisioning, risk analysis and loan funding. The areas where a modern Loan Origination Software are:
- Automate data collection from the customer.
- Verify the authenticity of documents digitally.
- Automate the underwriting process.
- Enable third-party integrations to the loan origination system.
- Enable automated workflow models.