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Loan Servicing Software

 
The Mortgage Office logo
 
The Mortgage Office is a loan servicing solution designed for companies of all sizes. It offers loan tracking, payment processing, document storage, workflow automation and reporting functionalities within a suite. The product is available... Read More
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The Mortgage Office is a loan servicing solution designed for companies of all sizes. It offers loan tracking, payment processing, document storage, workflow automation and reporting functionalities within a suite. The product is available... Read More
 
defi SERVICING logo
 
defi SERVICING is cloud-based loan servicing software for finance companies, banks and credit unions of all sizes. Key features include rule building, interface-configuration tools and more. The rule-builder feature allows users to... Read More
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defi SERVICING is cloud-based loan servicing software for finance companies, banks and credit unions of all sizes. Key features include rule building, interface-configuration tools and more. The rule-builder feature allows users to... Read More
 
LA Pro logo
 
LA Pro provides loan servicing software for lenders of all types and sizes, including banks, nonprofits, tribal lenders, credit unions and third-party services. The software helps users manage various types of lending portfolios with... Read More
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LA Pro provides loan servicing software for lenders of all types and sizes, including banks, nonprofits, tribal lenders, credit unions and third-party services. The software helps users manage various types of lending portfolios with... Read More
 
Margill Loan Manager logo
 
Margill Loan Manager is a Windows-based loan servicing and credit management software that supports various loan types including personal, corporate, intercompany, student, auto, litigation, mortgages and lines of credit. Key features... Read More
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Margill Loan Manager is a Windows-based loan servicing and credit management software that supports various loan types including personal, corporate, intercompany, student, auto, litigation, mortgages and lines of credit. Key features... Read More
 
Mortgage+Care logo
 
Mortgage+Care is a cloud-based and on-premise loan servicing solution for small, midsize and large commercial lenders, banks, nonprofit and economic development organizations. Primary features include loan origination, loan servicing,... Read More
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Mortgage+Care is a cloud-based and on-premise loan servicing solution for small, midsize and large commercial lenders, banks, nonprofit and economic development organizations. Primary features include loan origination, loan servicing,... Read More

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LOANLEDGER logo
 
LOANLEDGER is a cloud-based loan servicing solution for enterprises of all sizes. It’s suitable for mortgage firms, financial firms, automobile lending banks, private lenders, governmental agencies, municipalities, venture capitalists,... Read More
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LOANLEDGER is a cloud-based loan servicing solution for enterprises of all sizes. It’s suitable for mortgage firms, financial firms, automobile lending banks, private lenders, governmental agencies, municipalities, venture capitalists,... Read More
 
Turnkey Lender logo
 
Turnkey Lender is a loan management solution designed for cloud lending, retail, microfinance, medical, payday loans, lease financing and telecom lending. Available both in cloud-based and on-premise deployment options, the product... Read More
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Turnkey Lender is a loan management solution designed for cloud lending, retail, microfinance, medical, payday loans, lease financing and telecom lending. Available both in cloud-based and on-premise deployment options, the product... Read More
 
The Loan Navigator logo
 
The Loan Navigator is a loan management solution that offers loan lifecycle management, documentation, team collaboration, workflow management and reporting functionalities within a suite. Both cloud-based and on-premise deployments... Read More
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The Loan Navigator is a loan management solution that offers loan lifecycle management, documentation, team collaboration, workflow management and reporting functionalities within a suite. Both cloud-based and on-premise deployments... Read More
 
LOANS! for .Net logo
 
LOANS! for .Net is a cloud-based and on-premise loan servicing software for small, midsize and large enterprises. It caters to commercial lenders, insurance companies, mortgage lenders, credit unions, financial organizations and banks.... Read More
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LOANS! for .Net is a cloud-based and on-premise loan servicing software for small, midsize and large enterprises. It caters to commercial lenders, insurance companies, mortgage lenders, credit unions, financial organizations and banks.... Read More
 
AutoPal logo
 
AutoPal is a cloud-based loan management solution designed for small and midsize loan servicing companies. It offers interest calculation, lease calculation, auditing, loan creation and communication functionalities within a suite. Users... Read More
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AutoPal is a cloud-based loan management solution designed for small and midsize loan servicing companies. It offers interest calculation, lease calculation, auditing, loan creation and communication functionalities within a suite. Users... Read More

 

Buyer's Guide

by Justin Guinn,
Market Research Associate
Last Updated: August 13, 2017


Loan servicing businesses are inundated by checks and balances, due diligence, and customer and investor communications. All these tasks would be beyond daunting to take on alone. Luckily, there are many loan servicing software systems on the market offering operation support and automation for loan servicers.

But navigating these complex software systems can be tricky. There’s a ton of different features and capabilities out there. So it’s important that loan servicers pinpoint exactly what their needs are and align them with a specific providers’ offerings. We’ve broken down what’s being offered across the loan servicing software market so you can determine your own must-have features.

Here's what we'll cover:

What Is Loan Servicing Software?
Common Features of Loan Servicing Software
Benefits and Potential Issues with Loan Servicing Tools
Evaluating Loan Servicing Solutions

What Is Loan Servicing Software?

Loan servicing software is a unique combination of capabilities that support the entirety of a loan service’s operation. These capabilities help automate and streamline previously tedious manual tasks like loan origination and creation as well as prospect outreach and management.

While each system is unique, most offer features that complement the entire loan life cycle.

Lifecycle Of A Loan

lifecycle of a loan

As you can see, the lifecycle of a loan begins with initial outreach to prospects. The cycle concludes once a client has paid a loan back in full, but then it just resets and the former client becomes a prospective client once again.

After client outreach and marketing, loan providers must complete their due diligence by administering formal applications and processing these applications to determine a borrower’s financial viability and assess risks involved with the loan. Once this is completed, a loan can then be generated, finalized, and funds distributed.

This process, when being spread across numerous clients simultaneously, can be overwhelming. That’s why loan servicing software is such a valuable tool for loan issuers. It can automate much of these steps and provide a secure, organized data management system.

Common Features of Loan Servicing Software

Given all the different hats that loan service businesses must wear, there’s a ton of common software features for their software systems. These include:

Loan origination Create numerous loan types with various combinations of payment options, interest methods, and fees. Expedite the underwriting process through automation.
Loan servicing Automate billing statements and emails notifications for payments. Uphold amortization plans. Automate administration of penalties and fees.
Communication tools Send direct messages and documents through secured communication tools built into each platform. Communicate through SMS messaging. Create and send direct mail.
Client management Run credit checks to obtain client credit scores. Assign and monitor user access using security and permission management. Record client notes to reference down the road.
Investor management Monitor and report on the statuses of private investments. Enable remittance and fund collection with various reconciliation methods.
Payment management Set automated requests for payments. Allow multiple payment options. Automatically withdraw funds from customers.
Analytics dashboard Get an easy-to-understand dashboard display of key metrics across multiple measurements. Automate reporting and customize dashboards with desired analytics.
Electronic signatures Gain efficiency through eliminating the back-and-forth common with paper signatures. Provide a more convenient experience for clients.
Document management Securely create, share, and store key documents between clients and investors.

This is quite the list, but again it’s important to keep in mind all the features that can benefit your loan servicing business. Obviously the must-have loan servicing software features are loan servicing and loan origination. These two core features lay the bedrock for your loan business.

Aside from them, it’s crucial you are able to properly communicate with current and potential clients and investors. This could be in the form of separate customer relationship management software, or you could choose loan software that features strong customer and contact management tools.

Benefits and Potential Issues of Loan Servicing Tools

The benefits of loan servicing software are rooted in the accuracy, automations, and efficiencies they provide. By automating critical and even simple everyday tasks, you can remove the risks of human error. This goes for everything from potential client outreach to payment reminders and even loan detail generations.

With the advanced analytics tools, you’ll have a consistent and accurate view of pinpoint performance data. This unparalleled transparency provides you with the ability to make informed business decisions across your entire operation. Such accuracy in data analysis will help bolster your risk management practices, allowing your loan servicing business to assign risked-based value assessments to potential loanees.

The potential value and benefits provided by loan servicing software systems seem apparent, but a number of issues should be considered when deciding on a system. For example, many loan servicing software systems provide varying levels of customer relationship management software. However, not every system has as in depth of capabilities as you’ll need. That’s why it’s so important for you to analyze current pain points and translate those into business needs and software features that can help accomplish them.

But it’s not just enough to determine what pain points you need your new loan servicing system to overcome now. Consider where you’ll be in the next year to two. What about five? When you’re analyzing your current system, it’s crucial you project potential pain points down the road that the software you adopt now can help you address.

Evaluating Loan Servicing Solutions

Loan servicing software can turn your business around with the efficiencies and organization it provides. But it’s important to keep in mind that not all loan servicing software options are a fit for the specific needs of your business. Just as loan providers complete their due diligence on potential borrowers, the same must be done for a new loan servicing system. This will ensure the new system overcomes troublesome pain points and is designed to grow with the business.

Consider these formalized recommendations and best practices for optimizing the software selection process. We surveyed cross-industry software buyers to determine their methods for most effectively choosing the best software.Two crucial tactics include:

  • Consult team to determine pain points in need of fixing. While new loan servicing software should have sweeping positive benefits across your organization, there should be specific pain points in mind that you want to overcome. The best way to determine these is to meet with teams and get their input on bottlenecks or issues with processes.
  • Read loan servicing software reviews from actual users. The insights featured in software reviews from real loan servicers provide an unparalleled snapshot into key information you need to choose the best system.

 

 

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