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6/22/2022

Sandra Graise

The Benefits of Modernizing Your Loan Origination System

The Benefits of Modernizing Your Loan Origination System The loan origination process is a critical component of the lending industry, determining the speed, efficiency, and accuracy of loan processing. The loan origination system is a digital platform that streamlines the loan process from start to finish, improving the borrower experience and reducing data entry. A technology-focused loan origination system is especially crucial for the Small Business Administration (SBA) loan process, which can be complex and time-consuming. In this article, we’ll explore the benefits of modernizing your loan origination system and how it can help increase efficiencies for SBA loans.

Transform the Borrower Experience

A fully digital loan application enhances the borrower experience, making the loan process faster and more user-friendly. A digitized loan application includes smart questions, prompted guidance throughout the process, progress tracking, and direct communication with the lender. This enhances the borrower experience by providing a transparent and seamless loan process.

In addition to improving the borrower experience, a digital loan application helps lenders make key decisions faster. Imagine receiving a loan application digitally and having all the necessary information at your fingertips. Instead of spending hours reviewing the application for completeness, you can make a decision and move the file to underwriting in no time. This can reduce the time to fund by over 50%, providing a significant advantage to lenders.

Streamline Data Entry

Manually entering data into multiple systems is not only time-consuming but also increases the risk of errors. Keying in information into different systems requires highly specialized and detail-oriented staff, and anything less increases the chances of errors and loan denial. An ideal digitized loan origination system eliminates the need for manual data entry, reducing review time by over 50%.

The digitized loan origination system requires information to be keyed only once, and that data is followed throughout the loan process from initial decisioning to underwriting and closing. Once the information is checked, it doesn’t have to be re-entered, eliminating the need for manual data entry and reducing the risk of errors.

Eliminate Redundant Tasks

The SBA loan process involves many redundant tasks such as sending a letter of intent to purchase via DocuSign, checking OFAC and SAMS, sending borrower requests for information, following up on information requests, and setting up a closing checklist. These tasks happen at different stages of the loan origination process and require careful management.

Proper workflow management and automation can eliminate redundant tasks, saving over 50% of the time spent on these tasks. A loan origination system that integrates workflow management and automation helps lenders streamline the SBA loan process, making it faster and more efficient.

Integrated Document Generation

Form stamping tools have improved over the years, but they are not always integrated into most loan origination systems. Additionally, the complex business logic required for many SBA forms, such as the 1919, 1920, and SBA loan authorization forms, is not always available.

A loan origination system built with SBA documents in mind is key to saving time on document creation. If fully integrated into the loan origination system, documents can be generated in seconds, sent out via an e-sign platform, and returned with no effort on the lender's part. This eliminates the need for manual document creation and speeds up the loan process.

Save Time and Grow Your Loan Volume

The loan origination process can be time-consuming and draining, with an average of 80 man hours required to close a typical 7a loan. But with the right technology in place, you can reduce the time and effort needed to close a loan by over 50%. That's 40 hours of savings per loan that you can redirect towards growing your SBA loan volume.

Imagine the impact on your SBA department if you could process double the volume of loans with the same staff. The potential for growth is immense. And with a tech-enabled loan origination system, it's within reach. You'll benefit from streamlined workflows, an improved borrower experience, and reduced data entry. All of these elements combine to help you make faster decisions, save time, and increase your loan volume.

Visit LendUX.com to learn more about how you can transform your SBA loan process and take your business to the next level. The time to optimize your loan origination system is now!