Introduction: ELS versus LOS

For more than half a decade I’ve been telling the industry that the future of the mortgage lending business will be built on a new kind of technology. I have argued that the traditional loan origination system (LOS) is an outdated tool that cannot meet the evolving needs of the industry. Over the last year or so, I have seen my predication come true. The days of the Loan Origination System have given way to those of the Enterprise Lending System (ELS), though not everyone understands why or how. Even more peculiar is not everyone even really understands the difference between a LOS and an ELS.

For those who don’t spend their days working to bring mortgage technology to market, this transition may not be as clear. Some still believe that I’ve been talking about a change in labels, but I’m really talking about a change in the entire philosophy of mortgage technology for the loan origination business.

The dust is still settling from the financial crash, but the real requirements for Enterprise Lending Solutions are now clear. We now know what the technology of the future must look like.

From a distance, the LOS of the past and the ELS of the future may appear similar, but upon closer examination the differences become clear. That’s what I plan to do with this series of blog posts. Over the next few weeks, I’ll intersperse posts that compare and contrast LOS with ELS in with my regular blog posts. When I’m done, we’ll have looked at every aspect of modern loan origination technology and the differences between what the industry has used in the past and what it must adopt to compete in the future will become clear.

Anywhere along the line I welcome your comments and questions.