Back in September, I brought up the topic of the traditional Loan Origination System versus the Enterprise Lending System. The first installment of this series will focus on what has been conventionally known as the LOS.
When I first entered the space in the 90s and began talking to lenders, it was clear that there were large gaps in the mortgage technology space. Not only was I seeing massive inefficiencies, but the amount of failed implementations was astounding. Loan origination systems were more of a central repository database catered to manual process than they were offering technological innovations. The manual data entry loads created huge risk of human error and significantly slowed the origination process down. Buzz words like “paperless” and “web-based” were running rampant, and what did it really mean? At best it meant an online form that could be filled out and pushed into a database where the manual processes began. I get it; 1999, and even 2006, were different times. The industry jargon was ahead of the times. But what happened when the false promises began catching up to the bulk of loan origination providers? Stay tuned…
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