Digital Banking

An Informative Guide to Best Loan Origination Software

Loan Origination Software

Loan origination is one of the vital aspects of any lending business. The entire process depends on the origination, which includes collecting the right data about customers and analyzing it, evaluating risks, etc. This article provides you rich information about the loan origination software.

What is Loan Origination Software?

This software automates the end to end loan portfolio cycle, thereby simplifying and improving the application as well as the approval of loans. Loan origination solutions provide a holistic view of borrower transactions across all channels and products within a single platform.

It is a tool that helps the mortgage loan originators manage and automate the different stages of a loan cycle. The software comes with built-in components for regulatory compliance and risk assessment.

What are the benefits of Loan Origination Software?

This software provides the following benefits:

benefits of Loan Origination Software
  • Automated Underwriting

This software automates the underwriting process with the assistance of custom loan approval rules and risks analysis algorithms. It eliminates the need for manual calculation, thus accelerates decision making at the credit approval stage.

  • Enhances Efficiency and Reduces Costs

This software offers a self-service portal for customers to perform certain tasks on their own. It enhances efficiency and reduces costs for mortgage loan originators due to reduced administrative tasks.

  • Real-time reporting

This software provides the ability to monitor the process of loan origination in real-time. It helps the users to track every step in the loan service cycle, thereby fostering transparency across the organization.

What are the features of the loan origination software?

The main features of this software are as follows:

  • Document Management
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Upload, store, and share all documents in a centralized location, thus enabling everyone involved to access information easily.

  • Loan Processing

Collection of all information and preparation of documents required to sanction loan requests.

  • Audit Trail

Records of date and time can be viewed through the whole loan servicing cycle.

  • Compliance Management

Tracks and manages non-adherence to policies which may be regulatory and organizational.

  • Customer Management

Costumer information and interactions can be captured for analysis and for improving customer experience.

  • Online Application

It allows the customers to submit loan requests by filling online application forms.

  • Pricing Engine

It determines and generates loan pricing scenarios for borrowers.

What are the essential factors to consider before choosing Loan origination software?

Some of the essential factors to consider include the following:

  • Data Security Standards
  • Regular update
  • Full process automation
  • Integration with relevant databases
  • Price
  • Option to have a test drive

It’s vital that these factors are kept in mind because not all origination software providers may be vocal about the real capabilities of their platforms.

Some of the best Loan Origination Software

In this segment, we will be looking at each company’s product to see what they have to offer.

Loan Origination Software
  • Turnkey Lender

Turnkey Lender is a global unified lending management leader. It is an intelligent cloud-based software that automates the entire lending process and not just origination. The system includes integration with all major credit bureaus and synchronizes with external databases that help them to make an informed decision about the borrowers. 

One of the fundamental selling points of this company’s origination solution is its meaningful use of Artificial Intelligence and machine learning. As a pioneer in the development of AI software for lenders, Turnkey lender is gaining traction all across the globe. Many lenders are using the company’s solutions, whether large banks, small banks, digital lenders, trade finance operators, etc.

  • Cloud Lending Solutions
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Cloud lending solutions is another platform that helps lenders to reduce operational inefficiencies through automation and configuration. It has functionality that allows the lenders to manage origination processes, including loan file management, credit analysis, underwriting, and approvals.

The advantage of the system is that it is cloud-based loan management and has some configurability. Loan decision making is automated, and the system can be integrated with third-party data sources. The primary industries served are commercial, consumer, and small business lending and equipment finance.

  • Encompass

Encompass platform for loan origination is one of the prominent market players that covers the loan lifecycle and allows lenders to use only the modules they need in their operations. The solution involves functionality for compliance and custom screens tailored to individual personas. The goal of the company is to provide lenders with a flexible tool that is fit for various business processes and operations.

  • Calyx Point

Calyx is an established provider of compliant mortgage software solutions employed by credit unions, banks, mortgage lenders, etc. Its key functionality is loan processing that provides the score for each client, online application, and an audit trail.

The company’s easy to use technology like loan origination systems and secure electronic signature software streamlines and optimizes all phases of the loan process for different customers.

  • HES Lending platform

This platform automates and streamlines complex business processes within the evolving online lending environment. The company is open to implement the changes in the system in order to meet the specific needs of the client.

  • Lending Pad
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It works as a point of sale and loan origination system. The product is mainly to lend professionals like banks or credit unions. The functionality includes lead and campaign management, document storage, real-time reporting, and loan tracking.

  • FinFlux

FinFlux is a lending platform that provides all in one solution for loan origination, loan management, app-based lending, alternative data-based credit scoring. It provides classic and bespoke solutions. The platform comes with many integrations and market place nexus to improve the time to market.


The Loan origination software differs, and it is critical for your business that you make the right choice. While origination functionality is essential, what transpires, later on, is also required to be automated and generally by the same provider to have compatibility. It is also essential to understand that there are many loan origination solutions all around, but as far as real functionality, stability, and scalability are concerned, there are only a few that stand the ground. Therefore, proper research is required before finalizing software.

Also, read: All About Digital Lending and Its Business Models

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