‘Point of Sale’ Digitization: A Powerful Solution for Your Mortgage LOS

July 29,2022
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More innovative borrower experiences, end-to-end member communication, automated origination tools, and faster loans are simplifying the mortgage experience. Yet today, some credit unions aren’t utilizing point-of-sale (POS) functionality within their loan origination systems (LOS) to ensure borrowers complete all necessary steps.
 
Finding the right POS integration means the difference between a completed application and one that's abandoned by a member-borrower. A good POS will add value by making the loan process simple and straightforward through data extraction, timeline status, document uploading, credit checks, easier appraisals and instant/online member service communication:
 
  • Quicker Close Times. Automating core processes and using a digital POS system at your credit union can reduce loan-processing times and make things easier for borrowers.
 
  • Reduced Costs. You can lose money if areas within the loan process are not optimized. Saving time and money is possible by using a POS system that automates some compliance workflows. You can also reduce records management expenses from origin to storage to destruction. Digital tools can make this cheaper.
 
  • Experience with Members. Your credit union’s POS and LOS working together, will do wonders in managing your volume and increase conversions. User interface and experience, as well as backend features like automation, need to go hand in hand. You’ll miss important features if you don't have connectivity between your POS and your LOS. Both systems should sync basic data. Only then will you be able to efficiently communicate updates to borrowers, as this integration streamlines the mortgage process. Every step of the process must cater to the borrower's needs and communicate clearly.
 
  • Performance and Automation. A POS needs to fully integrate into your credit union’s technology applications to take advantage of automation. You might have to trade off some user experience and interface to find the best fit with your LOS. However, vendors can work directly with credit unions to review specifications and ensure a POS can integrate seamlessly with the existing LOS system, keeping in mind auxiliary solutions (appraisal, credit, etc.). Both your credit union and your borrowers will be happy with the results. Just make sure you find a POS that lets you automate and streamline the user experience.
 
  • Information Access and Control. Credit unions evaluating POS systems should consider the impact of data on both the borrower experience and automation. There's a lot of data in mortgage applications, such as income records, bank statements, brokerage accounts, tax returns, credit cards and credit reports. By sifting through “big data,” you can auto-fill some mandatory fields on a mortgage application and borrowers can get started much faster. A POS can solve problems with incorrect or incomplete borrower data, as well as foster internal cross-departmental collaboration and financial verification. Borrowers will have greater control over their data, resulting in more transparency on both sides.
 
  • Better Conversion Rates. When borrowers abandon online loan applications, it’s a big problem for credit unions. A process historically taking up to several days for a loan can be accomplished in minutes by other lenders using a POS. Optimizing the user experience throughout this process is key for better conversion rates. It doesn't matter if the process is simple or not; borrowers don't want to experience any hassles anywhere along the way. Conversion rates go up when the user interface experience is the best it can be, leaving no room for human error.
 
Incorporate point-of-sale (POS) functionality within your loan origination systems (LOS) to ensure borrowers receive the best mortgage experience.
by CU Members

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