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Automated Loan Decisioning, Part 1: How It Works

When your team needs reliable loan origination and management software, you need a fast, reliable, and accurate option. Usually, your customers cannot wait long periods of time for their loan application to process or encounter complications throughout origination due to faulty software. Concurrently, your employees cannot maintain an active workflow without the right decisioning tools and loan origination software at their fingertips.

With a viable software solution like absVision, your team and your customers will get the most from the loan origination and management process due in part to automated loan decisioning. Quality automation in the decisioning stage allows the underwriting process to move quickly and accurately. Customers can know the status of their loan application sooner, and your team can process more applications thanks to faster workflows.

How Does Automated Loan Decisioning Work?

While all stages of the loan origination and management process are crucial, the decisioning stage is especially important. This is the starting point where the underwriting process occurs, which will make or break a loan depending on the information processed.

Step 1: Pre-Qualification

Your team gathers the information you need from the borrower to begin. The information required will vary among industries, but it can include:

  • Proof of employment
  • List of assets
  • Income tax returns
  • Credit score

Step 2: Questions

Using quality LOS software, your team will move through a series of questions that determines the borrower’s level of risk and their ability to repay the loan. Depending on the nature of your business or the loan types your company offers, you can adjust these questions to fit your requirements.

Step 3: Application Decisioning

The software will process all the information entered and accept or deny the application based on where their results fall among the terms you set.

Step 4: Underwriting Automation

If the loan is approved, the underwriting process can begin.

Automated LOS systems like absVision have changed the lending game as it relieves lenders from manually completing this process over several days. Instead, our advanced algorithms produce results in seconds, saving your team time and satisfying your borrowers with faster service.

absVision from Allied Business Systems is an LOS with superior automated loan decisioning capabilities for your team.

We understand how vital the decisioning process is to loan origination and how crucial time is to your team and customers. Thanks to the automation of absVision, you can simplify the entire lending process, including loan decisioning. Call our consumer finance experts today to learn more about absVision: 800-727-7534

Stay tuned for part 2 of our automated loan decisioning series:

  • Automated Loan Decisioning, Part 1: How It Works
  • Automated Loan Decisioning, Part 2: Major Benefits