What You Need to Know About Loan Origination Automation Software for CRE Lenders

When originating a loan, CRE lenders and underwriters often face tedious, manual processes. This can mean hours spent manually verifying documents and assessing risks, resulting in long processing times and potential errors in decision-making.

However, modern loan origination automation software has changed this process for the better.

These systems automate document verification, processing, credit approval, and even underwriting—ultimately providing an easier and faster way to originate loans with higher accuracy.

Not only does loan origination automation software save time and resources for lenders, but it also offers regulatory compliance features that ensure standardized decision-making throughout the entire process.

There are a lot of technology providers out there and with so many options, we know it can get overwhelming. Here are a few things to know about loan origination automation software as you start searching. 

What is loan origination automation software?

Not unlike a Loan Origination System, loan origination automation software helps simplify the lending process for lenders and borrowers by automating numerous tasks that would otherwise need manual oversight.

Lending software qualifies applicants quickly and accurately while maintaining compliance standards across multiple jurisdictions more easily.

Some loan automation software is cloud-based and even available as mobile apps.

A typical loan origination automation software will include features to:

• Help lenders manage new leads
• Take applications from prospective borrowers
• Pre-qualify applicants
• Size deals & view market data 
• Generate a Letter of Intent or LOI
• Move loans through the underwriting process

Using loan origination software has become increasingly popular among financial institutions, credit unions, and CRE lenders due to its efficiency gains, management solutions, and better customer experience.

In fact, FinTech lenders provide a faster mortgage processing experience, taking around ten days off the average time traditional lenders take to process mortgages. That’s an incredible 20% decrease in total days from application submission until closing!

Features to look for in a loan origination automation software

When searching for loan origination automation software, here are some functionalities and other configurables to consider:

Document Management: This feature allows for secure and efficient storage and retrieval of documents related to loan origination. This includes storing, organizing, and quickly accessing documents from anywhere with an internet connection. An ideal solution should also have built-in document management capabilities that enable lenders to securely search, print, edit, or share documents related to the application process quickly and easily.

Reporting: An effective loan origination automation software should provide customizable reporting features that allow lenders to track their progress in meeting their loan origination goals.

Analytics: Analytics enable lenders to analyze their data using visualizations and predictive models, providing a peek into emerging trends and informing decisions.

Integration Options: A solid loan origination automation solution should offer API integration options with other third-party applications, such as accounting or CRM systems, which can save time and reduce risk while managing a loan portfolio.

Automated Underwriting: This feature enables CRE lenders to assess applicants more accurately and faster through electronic decision technology compliant with the latest industry standards.

Compliance Management: Compliance is essential to any successful lending business since almost every jurisdiction has its own set of rules & regulations governing loans and lending activities. This feature allows you to easily monitor and track activities throughout the entire life cycle process, thus avoiding potential compliance issues before they arise. Furthermore, this feature can also be used as a reference point if there are any discrepancies concerning regulations applicable in given jurisdictions.

Loan Pricing Engine: The loan pricing engine is another important feature that helps lenders determine pricing structure based on risk, term, market conditions, etc. Not only this, but this feature also enables lenders automatically update & apply new interest rates once conditions change, thereby helping maintain profitability over the long term.

Benefits of using origination software

Here are some reasons why you should consider using loan software as a lender:

Loan origination software helps to lower risk, as it can accurately track and update data in real-time. This ensures that all information is up-to-date and accurate so lenders can approve loans quickly and efficiently.

Using loan origination software saves time, automating many of the processes involved in the loan management process. This eliminates the need for manual data entry and reduces paperwork. All while allowing lenders to focus on more important tasks related to the loan process and improving user experience!

Loan origination software accurately tracks information associated with a loan, which reduces errors and helps streamline the entire process. The software can track all the necessary documents, ensuring everything is preserved throughout a loan lifecycle.

Loan origination software reduces errors and reduces the risk of fraud. The software is designed to track all loan information, including repayments and payment processing. This also helps lenders better serve their customers by ensuring accuracy regarding loan applications and other related activities.

Lastly, it consolidates information into one platform, allowing lenders to understand their customers’ business needs better, make more informed decisions, and improve customer satisfaction.

Blooma, your loan origination automation solution

CRE lenders need help managing their loan origination process. Completing a loan, from risk evaluation to underwriting and negotiations, can be daunting and time-consuming.

Blooma has one of the best loan origination automation solutions. It’s the perfect choice for CRE lenders looking to make the most of their lending process.

Blooma’s AI-driven solutions help commercial lenders like you from end-to-end—so you can view and close more deals while getting ahead of risk.

Our web-based platform provides many features to help CRE lenders reduce manual efforts, streamline workflow, and gain greater insights into potential borrowers. With built-in analytics capabilities, automated workflow automation, and an integrated document management system offering secure storage and easy access, our loan origination automation software helps optimize every step from initial contact to closing.

CRE lenders who leverage Blooma’s commercial lending platform will benefit from enhanced data analysis capabilities for fast-tracking potential borrowers and mitigation of risks during underwriting and agreement negotiations with more confidence. Our automated workflow feature also ensures all team members access the same information while eliminating lags due to miscommunication or lack of information sharing between departments.

Experience first-hand how our loan automation origination and lending solution – all of our CRE financial services – can improve your bottom line by scheduling a free demo today!