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Does Your FI’s Loan Origination System Need a System Administrator?

Several months ago, I started receiving appointment reminders for various spa services that I did not schedule. I have been at this spa previously but was certain I hadn’t booked anything in the near or distant future. The first two reminders I politely called to notify them of their mistake. I felt the messages I left were clear and concise with enough information provided to correct the error. However, when the third reminder came two days later, I became more than slightly annoyed. This time I made sure my conversation was now with a live receptionist and was much more direct and to the point. I requested that all my contact information be removed from their database. I didn’t hang up until she confirmed that it complete.  And, to be quite honest, I could have used a good neck and head massage afterward to relieve the tension the ordeal had caused me.   Automations are great and create a lot of efficiencies, but they need to be managed. Your automated processes require consistent review and auditing to regulate and keep them current. Loan origination systems are excellent examples of just this fact. They are mission critical to successful loan programs with a plethora of automated features, functionality, options, and third-party integrations and data mappings, and testing that need to be regularly maintained. Welcome to the world of the System Administrator.
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Business Intelligence Misconceptions Within the Financial Institution

on Wed, Aug 28,2019 @ 04:59 PM | By Yelena Kolesnik | business process management
Last September I took a trip to Tanzania, cue The Lion King soundtrack, I did go on a safari. We did a two-day safari through the Tarangire National Park and around the Ngorongoro Crater. Based on what I had read, pictures I had seen, and television shows I had watched, my perception was that these parks would be crawling with wild animals or at least they would be clustered around watering holes. In reality, it took a lot of driving through the park to view small groups of animals sporadically. While still an amazing experience, it turned out to be so different than I imagined. Unfortunately, the only area that was really crawling with animals (mostly monkeys) was the picnic area which resulted in half of my lunch being hauled away by a small monkey. When experiencing something completely new that you have studied and prepared for the first time, there will almost always be some ’perception versus reality’ issues. Just like the African wild was to me, business intelligence (BI) can be new frontier for most financial institutions. In order to better understanding BI and create the right expectations, there are two common misconceptions that need to be cleared up.
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Key Components that Every LOS Should Have

on Wed, Aug 21,2019 @ 03:14 PM | By Yelena Kolesnik | Loan Origination Software loan origination system
I like to assume that I’m a decent cook, maybe not THE FOOD NETWORK worthy, but good enough to where I present something that looks and tastes good most of the time. I do need to work on my epicurean consistency. My usual downfall is not having one or two of the recipe’s necessary ingredients. I then assume that I can make a pantry item substitute (like baking soda for baking powder) or, feeling lucky, omitting the item all together (like Parmesan cheese in lasagna). Unfortunately, more times than not, the experiment doesn’t end well, and I’m left with a C+ dish. It’s edible, but it could be so much better. With every cooking experience I am learning what ingredients are mandatory to include and what should never be substituted. Although, a loan origination system (LOS) is no home-cooked lasagna, there are features and functionality that will make or break the product. Let’s review four important items that you should be in your LOS pantry.
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Digital-First Approach to the Consumer Experience, Does Your Financial Institution Measure Up?

As a millennial, I’ve spent a big portion of adult life with technology that allows me to do, surprisingly, a lot from the comfort of my couch, with my iPhone in hand. It’s fascinating to see how many staple processes in our culture have been completely flipped upside down as a result of technological advances.
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Important Items to Note When Investing in a New Loan Origination System

Several years ago, I was unexpectedly faced with the decision of buying a car. Not at all ready, I aimlessly read articles and bombarded everyone I knew with questions about their cars. And just like an internet review, the feedback was either overwhelmingly positive or negative. Through this process, I did receive one piece of great advice. Simply put, there is no perfect machine out there and not all features and factors are of equal value to everyone. It is important to identify your key needs and important features before you start the shopping and test-driving phase.
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Compliance Corner: 4 Essential Elements of Any Loan Origination System

For all of its advancements over the past decade, social media is still the Wild West in terms of trying to police behavior. The days of anonymous posters spouting off and trolling others are far from over, but that doesn’t mean that efforts to moderate content are not making serious strides. In fact, Forbes published an article over the weekend suggesting compliance scoring as a way to automate moderation. It’s a very interesting idea and worth a read if you haven’t caught wind of how big data and AI can be used to gamify social media to reward positive interactions and behavior and punish negative or destructive behavior. As a result compliance to sites’ policies and guidelines would be much more transparent than it is today. As technology continues to evolve, doors are opened that can lead to more sophisticated compliance measures. This is also true in the lending industry as loan origination systems incorporate more automation, reporting and other functionality to help financial institutions comply with regulatory standards.
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3 Tips to Avoid Getting Burned by Inadequate Loan Software Support

Much like how consumers rely on quality technical support to enjoy their new computers, tablets, gaming systems or appliances, lenders need the same reliable and efficient support from their loan software providers. At the end of the day, consumers are just as loyal to brand names for their service capabilities as they are for the technology – and financial institutions are no different. We covered a few best practices regarding software support last month, so now’s a good time to take things a step further with three more key considerations that will help your financial institution avoid getting burned -- especially during these hot summer months.
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How to Tell if Your Loan Software Can Provide Sufficient External Data Access

There are few things worse than making a long-term investment in a piece of technology and finding out a few months down the road that it’s obsolete or can't deliver. As a young kid, my older brother and I petitioned our parents for a video game system. For anyone familiar with Atari systems, which happened to be where all of the hoopla and hullabaloo was back in the mid-1980s, they will remember that there were several versions of systems instead of one system that took center stage and could play all of the games. Lo and behold, we got a system that was soon afterward discontinued and only had a limited number of games – none of which were the most popular at the time. In retrospect, maybe that system was on the clearance rack and our parents had no idea why. The point is that they gave in a few years later and bought us a new system. So what does this have to do with loan software? The answer is everything, especially when you’re referring to investing in a platform that can’t accommodate a lender’s need for robust external data access.
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Ask the Experts: How the FDCPA Could Force Collections Compliance Changes

on Thu, Jul 11,2019 @ 06:47 AM | By Chris Carlson | Compliance CFPB ask the experts collections
Collections compliance could be in for some big changes in the near future. So that’s why we recently hosted a webinar to discuss how a proposed rule change to the Fair Debt Collection Practices Act and how it might affect collections technology and processes, if passed. In case you’re unfamiliar with the FDCPA, it is a federal law that governs debt collection practices. The FDCPA prohibits debt collection companies from using abusive, unfair or deceptive practices to collect debts. The presentation was very informative, but we also fielded questions from attendees near the end of the webinar. Here are just a few of the questions that were addressed:
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Summer Tips for Improved Fraud Detection & Prevention from Your Loan Software

Have a safe and happy holiday week! Hopefully, you’ve already started your brief, yet likely well-deserved, time away from the office and will read this when you return. But for the others like me still putting in hours until tomorrow’s national holiday, now’s an excellent time to focus on a topic many of us highly prioritize – security. While safety and security this weekend will deal more with properly handling fireworks or ensuring everyone follows the recommended precautions if you’re out on the water, it also makes sense to focus on how your loan origination system should help your financial institution effectively mitigate exposure to fraud.
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