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Loan Origination Software vs. Mortgage CRM: What’s the Difference?

By on May 18, 2022 0

Loan Origination Software vs. Mortgage CRM

Some lenders are making the mistake of using their loan origination software (“LOS”) as their customer relationship management (“CRM”) platform, according to our research. As a result, they’re missing out on potentially lucrative business prospects. Read more about Loan Origination Software vs. Mortgage CRM: visit citrusnorth.com here >>.

While LOS systems are useful for managing all aspects of the lending process, they aren’t meant to nurture leads, organize team communication, or expand the firm. Their main aim is to speed up loan-related operations, not to accommodate (and improve) consumer relations.

Mortgage CRM systems are essential because that is exactly what they were created for. 

They ensure that your customer’s interaction with you is uninterrupted, with no gaps that could cause the customer to completely lose interest in the process. They should collaborate rather than compete with one another. Let’s take a look at what each of these software programs does and how they differ.

What Is Loan Origination Software and How Does It Work?

In its broadest sense, loan origination software automates all stages of the lending process. 

It is the ‘back end’ for a mortgage business, ultimately producing a Fannie Mae 3.2 document, the standard final document for all loans. Working without loan origination software would make an already challenging process considerably more arduous, so many LOS consider it an essential tool.

Workflows and Tasks in LOS

LOS systems streamline and improve the efficiency of the loan application process by automating a large number of procedures. Most LOS systems can: 

  • Ensure compliance with external and internal rules 
  • Process pre-qualification and loan applications 
  • Facilitate risk assessment and other underwriting responsibilities.

Functions of Credit Pull

Because hard credit pulls can lower a borrower’s overall credit score by a few points in some situations, most LOS systems feature automated prompts for authorizing credit pulls and requesting an eConsent form from the borrower.

So, what is it that the LOS system can’t do? Maintain your relationships with the people that matter the most to your company: your customers. CRM software is necessary to keep your company in front of your consumers’ minds.

What is Customer Relationship Management (CRM) Software?

The purpose of mortgage CRM software is to manage client interactions, not the loan process. 

In other words, it dos not replace the LOS system but rather complements it to improve the entire customer experience. Mortgage CRM software aids lenders in managing client relationships from lead to prospect and strengthening connections throughout the loan process, from pre-qualification to funding.

But how does it function? On the other hand, CRM software may help a business expand by providing capabilities such as branded emails, marketing campaign automation, and even customer birthday reminders to personalize customer interactions. The lender’s relationship with the customer is fine-tuned through CRM software, making it feel less transactional and more personal.

Communicating via email and text

The benefits of communication between team members and consumers cannot be overstated. 

A smart mortgage CRM platform should allow team members to communicate via text and email to encourage frequent and efficient contact.

Management of customer relationships

Consistent customer communication is crucial, as you are surely aware. Personal touches such as handwritten notes and appreciation presents can help to enhance the relationship between the lender and the borrower throughout the loan procedure. A CRM software allows you to track customer preferences as well as information that can help you better create a rapport with them— preferences ranging from sports teams to restaurants to preferred communication methods.

To keep a client engaged with the correct message at the right time, a successful mortgage CRM solution should, for example, allow team members to set reminders with templates.

Management of mortgage leads

Customers nowadays expect service to be quick, if not immediate. A lender’s CRM software should allow them to follow up with a lead in minutes, not hours or days. Call prompts with scripts, a centralized contact information database, a reporting center, and access to standard and bespoke templates for capturing new lead information should all be included.

How Mortgage CRM Software and Loan Origination Software Work Together

CRM software for mortgages is an effective sales and marketing tool. It should be integrated with the LOS so that data can flow freely between the two. When a new loan application is submitted in the LOS, a CRM software system may send out contact prompts.