Help Your Clients with Loan Origination Software

Loan origination software can make your job much easier by helping you hone in on the best prospects while complying with numerous regulations. It can also be used to help your clients find the best mortgage products for their specific needs – a win-win solution for lenders that want to follow a consultative approach.

First, loan origination software can be used to quickly determine a borrower’s eligibility. Instead of wasting everyone’s time, the software allows you to find out if your products are a good match for the borrower and if the borrower qualifies. Loan origination software examines a variety of guidelines specific to a loan type such as loan purpose, occupancy, credit history, reserves, and so on to quickly determine eligibility. Once eligibility (or ineligibility) is determined, you can move on accordingly.

Loan origination software also typically contains pricing tools so that you can quickly quote a product using general information. For example, some loan pricing software allows you to specify the basics such as purchase price, down payment, basic property information, borrower type, and credit score without requiring specific details and time-consuming data entry.

Not only can you quickly determine eligibility and quote prices to potential clients, loan pricing software also makes it easy to plug in various options such as rate targets or borrower paid points to see how these options affect the monthly payments.

In addition, loan pricing software typically conforms to the most current regulations. For example, some programs include reporting tools that comply with Dodd-Frank’s anti-steering provisions by documenting the various loan products discussed and how the borrower reached the decision. (Source: Mortgage Software By NYLX)

Using loan origination software is essential in today’s highly regulated mortgage lending environment. While compliance is mandatory, loan origination and pricing software can also help you to provide the best service possible to your clients.

Keeping The Housing Bubble At Bay

Are you familiar with the housing bubble? Perhaps it had an effect on you directly, either as a homeowner or as a mortgage lender. In either case, it is important for you to understand the basics of what occurred during the housing bubble and the different measures that were put into place which will help to keep it from occurring again. For example, mortgage lead generation continues to be a very important part of the mortgage business, as does the right type of mortgage pipeline management. Of course, things have changed and there are more stringent rules in place at this time which will help to keep the problems that occurred in the early part of the 21st-century from occurring again. For example, the old mortgages that ballooned after five or 10 years are now gone and the regulations for all mortgages have tightened up considerably. That helps to keep things in check so that problems do not occur as frequently. (Source: Mortgage Lead Generation by NYLX)

If you are in the mortgage industry, it is still possible for you to make good money but you need to make sure that everything is set up properly. Many mortgage loan officers find that it is necessary to run some type of mortgage banker software to keep everything on the up and up. The right type of software will not only allow you to manage the various loans that you may have at this time, it is also going to help you to remain in compliance with any agencies that are regulating your business.

Getting an Affordable Mortgage Loan in Your Area

Freddie Mac recently released its latest Primary Mortgage Market Survey (PMMS), and the news was good for prospective homebuyers. According to the federally-backed mortgage giant, 30-year fixed rates floundered around 3.62 percent, while 15-year rates averaged just 2.89 percent. This time last year, 30-year rates were as high as 4.60 percent, while 15-year rates were up to 3.75 percent.

Frank Nothaft, chief economist for Freddie Mac, blamed contraction in the manufacturing industry and less consumer spending for the decreased rates; however, rates have been near record lows for months, thanks to a variety of reasons.

What it means for buyers

Low mortgage rates are good news for buyers who are looking for affordable home loans. Right now, buying conditions are especially favorable, thanks to low home values throughout much of the country. If you are in a good position to buy, you could secure a very nice home you might normally be unable to afford.