Mortgage Software Selection Criteria

When selecting a fully hosted, on-demand mortgage lending solution, mortgage lenders must ensure that their existing staff can understand, implement and, most importantly, control the technology and associated data. The key technology concerns facing mortgage lenders are implementation, compliance, security and maintenance. Mortgage lenders contemplating creating or growing mortgage lending operations should consider the following criteria when exploring their technology options:

Implementation: Solutions that require more than 60 days to fully implement are not only more costly, but are also exponentially more likely to fail.

Compliance: An automation strategy must include data integrity checks that make sure data entered makes sense, access to historical data (ability to identify when and what data was changed), and configurable security rights for various users based on the status of a loan record. Additionally, rules-based disclosures should be provided on loan terms, changes to the annual percentage rate, and mortgage insurance.

Data collection requirements for key activities, such as printing, interfaces, dates, closing docs, must be driven by business logic rules based on user roles and loan status. Users should be assigned system rights that permit a user to accomplish specific activities within a shared data environment.

Maintenance: Systems should be designed to require an absolute minimum of support for regulatory and functionality upgrades. The lending industry requires a constant technology and systems vigilance to ensure loans are properly originated, approved, and closed within the guidelines established by Federal, State, HUD, and investor specific requirements.

Support and Training: Systems should simplify the administrative and user support processes. Advance systems provide the ability to reach dedicated support specialists familiar with the system functionality and mortgage industry standards. Training should be available on demand or on a regular basis on via online tutorials, videos, or classroom webinars. This allows lenders to identify expand usage of existing system features and quickly implement future tools and services.

Security: Documented and proven controls are becoming more critical as threats and new government mandates evolve. Service providers should have third party audits such as a SAS 70 to ensure controls are implemented and followed. Controls are needed to address software development, system support, and physical security. This generally includes access, climate control, redundancy, disaster recovery, and business resumption. Controls must also deal with network/data security, including encryption, authentication, and data integrity based on user roles and loan file status.

Learn more about Web-Based loan origination software, and how mortgage lenders can transition easily from their software-in-a-box, out dated operational infrastructure into a Web-based, streamlined mortgage loan origination software system.