A range of mortgage service providers have integrated their offerings into several loan origination systems. The integrations promise to make access to the products easier.
Stratmor Group reported in its STRATMOR Insights newsletter that cost per loan doubled between 2005 and 2015, while productivity was cut in half during the same period.
Cost per loan was up 150 percent for retail lending, 166 percent on consumer-direct originations, 202 percent for broker lending and 82 percent on correspondent lending.
The report indicated that return on investment from commercial-off-the-shelf LOS systems can’t be easily measured due to too many variables being involved.
Stratmor said that when LOS providers promote their systems, they focus on increasing revenue and lowering production costs. They cite studies indicating a specific dollar amount in savings even though there is no ROI-validating methodology for lenders and no way to compare competing vendors.
“Thus, while vendor intentions may be good, and lenders want to believe the claims, there is no reliable way to prove that any LOS delivers ROI that lenders can take to the bank,” the report stated.
This month, integrations with Ellie Mae Inc.’s Encompass platform have been announced for Credit Plus’ The Work Number employment verifications,
LodeStar Software Solutions’ Loan Estimate Calculator and RamQuest’s services for title and settlement agents.
Since last month, integrations with Encompass were also reported for Qualia’s cloud-based settlement software and for
Radian Guaranty Inc.’s Radian MI for non-delegated data and document submission.
Pleasanton, California-based Ellie Mae is a Mortgage Daily advertiser.
On Wednesday, a news release said that First American Mortgage Solutions LLC’s products and services have been integrated into the LendingQB LOS.
Arch Mortgage Insurance Co. has completed a new integration with CalyxSoftware’s PathSoftware, a Sept. 23 statement said.
“PathSoftware is the industry’s first data-driven, not form-driven, LOS,” the press release stated. “It enhances visibility and improves productivity across multiple business channels — wholesale, retail and correspondent.”
An integration between RV Exchange and Informative Research has made it faster and easier for the LOS’ users to order tri-merge credit reports, ReverseVision announced last month.
RV Exchange serves as a centralized exchange for reverse mortgages.
Black Knight Financial Services announced this month that Santander Bank, N.A., has signed on to use its LoanSphere Empower LOS.
The decision to go with the Empower system was driven by Black Knight’s “proven technology infrastructure and integration expertise, as well as Empower’s continual updates in support of changing regulatory requirements.”
