Loan Origination System
Digital mortgages have become more and more a reality.
This has been confirmed by studies that show the old-fashioned analogue mortgage is too inconvenient and cumbersome for today’s customers. As we live in a digital world and we expect that we should have an easy journey for acquiring a home, along the same lines as ordering a pizza or buying goods online.
ApPello’s Mortgage Loan Origination System offers your customers a fully digital experience throughout the entire process, from submitting the application to the disbursement and monitoring.
Updates and notifications help the customer to better understand the status of the application and provide transparency over the entire process. With ApPello’s Mortgage Loan Origination Solution, banks can offer their customers product recommendations and a selection tool to choose the best mortgage option for their needs.
Improved sales effectiveness with omnichannel capabilities and an enhanced customer experience
Cost reduction with optimised processes, a flexible toolset, changeable rules, screens, dataset workflow
Shorten origination processes through the use of automation, document management and integration
Enhanced customer experience with face recognition and
Monitoring and reporting tools ensure process efficiency for lower operational and credit risk
Prompt reaction to market needs
support of LOS
The ApPello Mortgage Loan Origination System covers the lending process from the first interaction with prospects to disbursement and the whole credit lifecycle (including waivers, prolongation, restructuring, termination and monitoring) and is supported by standard Camunda BPM within ApPello’s platform.
This solution unifies client onboarding, loan origination, credit workflow, risk and decision processes and any related loan administration. The modular solution has been successfully implemented in complex banking environments.
The application includes the full lending workflow with different front-ends for different application purposes. The ApPello Mortgage Loan Origination System contains integrated front- and back-office systems. It can accelerate the credit application process with a seamless customer experience. The focus of development was to reduce the time-to-decision for in-house users and the time-to-money for bank clients.
Workflow of Mortgage Loan Origination
- Register client in CRM
- Sign up / Sign out
- Login & Password management
- Portal for customers and agents
- Product selection
- Informing clients
- Repayment plan and APR calculation
- Covenant handling
- Checking KO criteria
- Set up configurable scorecards (optional)
- Limit calculation
- Track scoring result
- Initial repayment plan
- Track decision results
- Integration to Credit Bureau, TAX database
- Decision administration
- Document checklist
- Contract generation
- Configurable disbursement conditions
- Checking conditions
Early warning and Monitoring
- Soft / Hard collection support
- Early Warning option
- Up/Cross-sales opportunities
Mortgage Loan Origination System
The Mortgage Loan Origination System is supported by the following critical components to support the end-to-end loan processing:
- Loan application management
- Pre-screening of applications
- Collateral management
- Covenant management
- Document management
- Non-financial analysis
- Dynamic questionnaires, scorecards
- Risk based pricing
Simplified & user-friendly
loan application process
The Mortgage Loan Origination System offers customers an easy and friendly way of providing the required information for their mortgage application. Through integration with third-parties and data aggregators, the bank can obtain most of the information required for the loan application, thus minimising the effort on the customer’s part. In addition to the increased customer convenience, the bank benefits from lower processing costs, higher data accuracy and lower operational and fraud risk. In the process of collecting additional information, customers are presented with user-friendly forms that organise the information into small sections that are easy to fill, helping them to be in control, thus increasing the pull-through rates and encouraging progress.
Product recommendation &
After providing the initial set of information, the application presents the user with details of the recommended loan products and it also presents additional, personalised options, in order to help the customer to select the best loan product for their needs. This leads to increased customer satisfaction and a more efficient sales process.
Transparent & smooth
The Mortgage Loan Origination System helps to create seamless processes and an excellent borrower experience.
- The front-end portal handles the client and the bank communication in real-time, making the whole origination process smoother and faster.
- The user can fill in the required information, can provide documents to the bank, initiate a property valuation flow and send and receive messages related to their loan applications.
The Decision Engine is seamlessly integrated through its APIs into the Mortgage Loan Origination System.
The engine can work for pre-screening, classical scoring, rating, limit calculation and any additional decision points. It can handle an unlimited number of different decision logics, which can differ by customer segment (including sub-segments), product, product variant, etc. The models can be differentiated by product or client sub-segments.
Business rules and decision logic with graphical visualisation can be built and customised by the Bank’s employees with relevant roles, even without deep IT knowledge.
For the Mortgage Loan Origination process, it is necessary to know all existing loans and collaterals of the client. The System allows the entry of the obligations and collateral data from the screen, as well as the importing of these data via standard APIs. Any supplementary data may also be entered for the selected collateral.
The solution is integrated to a document management module for both generating and storing documents.
It handles any type of contract. The contracts are generated automatically, and it collects all relevant information to fill in every detail. Technically it is generated with the help of MS Word templates with macros.
Document management tools help to generate various documents based on templates and then auto-fills them with all relevant and available data in the system. This is a highly useful and time-saving tool in the loan origination process, used for preparing all of the paperwork needed in the process (loan proposals, contracts, notifications, statements, etc.). Digital signature supports the verification of contracts and agreements.
ApPello Loan Origination System allows power users to flexibly manage and customize all lending related workflows for their full lifecycle. Any number of workflow types can be defined using the inbuilt editor interfaces. Different workflows can be created using different workflow steps by bank users without the assistance of ApPello or an IT team. The precondition and copletion criteria for all these workflows can also be easily parameterised. Depending on the actual parameters, parallel tasks can be defined with the same or different assignees that can be performed in any given order.
Other Configuration opportunities:
- Screen design
- Dynamic fields
- Additional business rules
100% API covered solution:
- All business features
- Data manipulation
Apart from business calculations the system’s business parameters can also be managed using Excel. The system provides Excel import functions (10+) to maintain standard parameter rulesets in Excel that can be audited and verified.
Most frequently used catalogues are as below:
- Product catalogue
- Collateral catalogue
- Covenant catalogue
- Document type catalogue
- Workflow step catalogue
You might also be interested in our other lending solutions
ApPello Loan Origination System is designed for banks and financial institutions to manage the lending processes of unsecured retail loans.
Speeds up and automates decisions. It is a segment and product-independent solution that can handle business-related decisions of varying complexity within a centralised platform.