From working with potential borrowers who back out at the last minute to navigating through the stages of borrower delinquency, there are several pain points that loan officers and lending companies face. While some issues are directly caused by borrowers, other pain points can stem from the nature of the lending process, the technologies at play, and other aspects of loan origination and management.
Lending Pain Points Loan Officers Often Encounter
Let’s look at three of the most common pain points affecting loan officers and the solution available to mitigate them.
Slow Loan Origination Speeds
The speed at which lenders can serve borrowers is often a topic of conversation in the lending industry. Traditional institutions and companies offering lending services to their customers compete with alternative lenders who can significantly shorten timelines and wait periods. In today’s fast-paced world, where streamlining is becoming more and more possible, it’s not ideal to choose a lender who requires a long period between application and acceptance. Many institutions are passed over for alternative providers who can minimize the time it takes to apply, get approved, and accept the loan.
Plus, now that we have experienced the expedited shift to faster digital processes thanks to COVID-19, Americans are even more inclined to expect shorter timelines when borrowing. 2020 brought many changes and disruptions across industries, and the lending industry was no exception. Lenders had to quickly navigate the transition to digital processes so that people could continue utilizing their lending services while in quarantine. And even though we are on the other side of the pandemic now, borrowers do not want to return to more traditional options or see processes slow back down. They want to continue benefiting from the changes that improve timelines and streamline loan origination.
Necessary But Difficult Collaboration
Loan origination can involve more than just the borrower and the lender. Depending on the type of loan a person is applying for, it could require involvement from an underwriter, governmental department, and other parties. In traditional lending methods, it can be difficult and time-consuming to keep up with communication and collaboration between everyone who must be included.
When a financial institution or lending company does not offer a collaboration-friendly solution for everyone involved with a loan, the loan officer is tasked with keeping up with various lines of communication to move the process forward, slowing down timelines, delaying progress, and frustrating applicants.
Keeping up with regulations and ensuring regulatory compliance are crucial aspects of lending. The regulations in place are ever changing and ever evolving, and different rules apply to each type of loan, including personal loans, student loans, mortgage loans, or any other kind. A loan officer must ensure the loan and all steps of the lending process comply with the rules in place.
Unfortunately, no software or solution out there can simplify the act of knowing and adhering to all necessary regulations for a loan. However, when a company does not provide the technology that helps with organization and data collection needed to stay compliant, the loan officer must work without much assistance through the significant pain point of ensuring compliance.
absVision Is the Problem Solving, Pain-Reducing Loan Origination Software You Need!
absVision is a customizable, configurable loan origination and management software from Allied Business Systems that supports loan officers at every step. From streamlining the origination process to allowing for easier communication and ensuring proper data collection, absVision transforms your workflow so that you can better serve your team and your customers.
Highly robust but simple to use, absVision meets all your lending needs and is regularly updated to ensure you always get the most advanced version available. With absVision, you can originate loans, track processes, accept payments, and easily integrate packages such as QuickBooks, Microsoft Dynamics, Intacct, and Sage.
absVision is available for institutions and companies that offer:
- Auto financing
- Consumer lending
- Real estate loans
- Retail installment
- Title loans
Ready to solve your loan officer’s pain points? Talk to Allied Business Systems about absVision today!
Discover all the ways absVision can serve your loan officers by speaking with an ABS expert today: 800-727-7534