When it comes to digital mortgage software, the entire technology stack is important; however, some become more valuable than others. At BeSmartee, when we present demos, many prospects will ask similar questions, one of them being: what is the difference between a Mortgage Point-of-Sale (POS) and a Loan Origination System (LOS)?
Have you ever asked yourself this question?
We’ll cover the differences in a Mortgage POS versus an LOS, but, first, let’s explore what a Mortgage POS can do for lenders in the origination process.
4 Ways a Mortgage POS Will Help Your Origination Process
1. Digital Application for the Borrower: Today, a Mortgage Point-of-Sale is a way to make sure lenders take a full application from start to finish, digitally.
2. For the Loan Officer: A Mortgage POS helps loan officers focus more on the customer, rather than managing manual administrative tasks.
3. For the Processor: For processors, the Mortgage POS allows them to process the file faster so they can process the loan quickly and efficiently. It also helps reduce human error.
4. For the Realtor: The Mortgage POS allows them to communicate with both the loan officer and the borrower. They get to see the most important status so that everyone is on the same page there is no miscommunication.
3 Main Reasons to Have a Loan Origination System
An LOS is the system of record for lenders. LOS systems have been here long before a POS system, with their primary goal being to do all the heavy lifting in the back end.
LOS systems handle the following:
1. Processing: Allows lenders to process a loan
2. Regulation: Helps the lenders stay up to date with the changing regulation from the consumer to the investor
3. System of Record: Built for the entire loan life cycle
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Let’s admit, there’s a lot of legacy mortgage baking technology out there. We’ve innovated since the birth of LOS systems 30 years ago. Because the Mortgage POS complements the LOS, the Mortgage POS has become extremely important to lenders.
Customers Demand a Mortgage POS
Buying behavior has changed and customers want platforms that are easy to use. This is true with millennials becoming homeowners. If you think about how an application was captured before the digital world, the manual, paper-based processes required a lot of back and forth.
But, it is different now.
Millennials, in particular, want to do an application from the comfort of their own homes, without having to deal with the back and forth.
How Important is it to Have Both Systems?
If you think about it they are both super important. Here’s why… in just one mortgage loan, there are more than 1,00 data points that need to be reviewed. Having both a robust Mortgage POS and LOS, you can avoid human error and become more efficient in your loan production.
Don’t you want that kind of efficiency?
The customer also has many benefits when a lender is using a robust Mortgage POS combined with an LOS.
- Borrowers are able to apply online and be able to see quotes in real-time
- Both systems should be able to have the ability to scale
- Both systems should be able to be flexible in their integrations
- Both systems should be able to have superior configuration capabilities
- Both systems should be able to integrate with one in another to help the lenders with their unique origination process
How Does a Mortgage POS Help Your Loan Officer?
In the past you had a bunch of loan consultation appointments only to collect some information. Today, you can still have appointments, but now you already have the data available to discuss real loan products that the borrower has on-hand. This is due to the borrower being able to complete everything beforehand, digitally.
- Borrowers complete an online application throughout the Mortgage POS system and loan officers receive it with credit scores, as well as any missing information borrowers might have forgotten to complete.
- Loan officers don’t have to push any data anywhere because the Mortgage POS and the LOS should be in sync, and already with a loan option to lock down.
- Processors don’t have to wait for loan officers to push the file to them because they are able to see everything to make loan conditions and receive a final approval.
Roundup
As a lender, you want to be able to make a return on your investment by having both systems working together seamlessly. You want one centralized system that has structured data, rather than having an unstructured system that is not user-centric.
With a Mortgage POS and a LOS, you get the best of both worlds because they are both expert systems in their own respective areas. What other differences have you noticed in Mortgage POS and LOS platforms?
To learn more about the BeSmartee Mortgage POS, contact us directly at (888) 276-1579 or email our mortgage technology experts at sales@besmartee.com.
