10 Best Loan Origination Software in 2024 [TOP RANKINGS]

Read and review to compare and select the best Loan Origination Software along with their features, pros, cons, etc to expedite your loan process:

Lenders must employ automation to be competitive and profitable in a customer-driven environment.

The best loan origination software is useful in this situation. It ought to assist your company in achieving its strategic goals.

For the end-to-end processes in the commercial loan process to be automated and managed, a Loan Origination System (LOS) should carry out several fundamental tasks. This includes Loan Application, Approval, Disbursement, and Supervision.

Loan Origination Software – Popular List

The following are further management capabilities of the end-to-end software:

• Building a pipeline, or developing a business.
• Fill in any gaps to speed up the approval procedure and streamline the credit application process.
• Decisions are based on credit analysis.
• Managing the risks in a portfolio.
• Ensure regulatory compliance and credit risk containment.
• Considerations for calculating loan and lease losses.
• Management of assets and liabilities.

We have chosen the top best origination software for this evaluation to help you make the best decision that would expedite your loan process and allow you to achieve high performance.

To assist you in making an immediate and well-informed selection, we have listed their key features, benefits, drawbacks, and our verdict. Also, for ease of scanning, we have provided a comparison table for our top 6 options.

Top Influencing Elements to watch:

• Increased usage of AI
• Machine learning
• Technology based on blockchain.

Companies all across the world are beginning to see the advantages of blockchain, AI, and machine learning. Some of the most current technologies that are likely to improve digital lending platforms and open up new development potential include AI, machine learning, and blockchain.

The worldwide loan origination software market’s solution segment, which accounted for the maximum component share of 79.26% in 2021, is anticipated to create revenues of US$ 4,350.38 million by the end of the predicted year.

Due to its low initial outlay, lack of license fees, and simple need for internet connectivity, cloud-based implementation is quite common in the global market for loan origination software.

Because of this, the market sector controlled over 62.40% (see the chart below) of the market in 2021 and is predicted to maintain its dominance, with a potential to bring in US$ 3,502.26 million in revenue by the end of the expected year.

How to Choose the Right Loan Origination System

Before you settle for a loan origination software, make sure your choice meets the following:

• Easy to adopt and use: A system that was implemented to alleviate problems with manual loan generation shouldn’t turn into a problem in and of itself. A good LOS is simple to use for anybody with a basic grasp of computers.
• Robust Interfaces and Workflows: Since that loan origination includes so many diverse phases and procedures, scaling manual activities is difficult (such as document management, the underwriting procedure, risk assessment, etc.). When choosing a loan origination software, consider the workflow features and API integration options.
• One Integrated System: The institution can enjoy considerable cost reductions in terms of the total cost of ownership by using a single system for all loan kinds. As features and qualifications vary from product to product, employing a single, consistent system for LOS allows for the use of economies of scope and scale.
• Consolidated database: Your LOS must be a complete solution that gives a single database with a unified overview of all credit activity. A comprehensive strategy will also guarantee that the bank’s credit guidelines are upheld during the loan review procedure.
• Customizable: A loan origination system never fits everyone’s needs. To stand out from the competition, it must be customized to the lender’s workflow requirements, be user-friendly while producing accurate results, and be able to readily adapt to any future requirements.
• Support and upkeep: There may be technical problems when the interface is operational constantly. At any time throughout the day, the system shouldn’t cease functioning. A specialized crew that monitors technological issues around the clock should exist.

List of the Best Loan Origination Software

Some useful mortgage loan origination software lists:

1. TIMVERO
2. Encompass
3. nCino
4. Sageworks Lending
5. LendingPad
6. Byte
7. Floify
8. Velocity
9. Bryt
10. TurnKey Lender
11. Loansifter

Comparison Table of Top Mortgage Loan Processing Software

Detailed reviews:

#1) TIMVERO

Best for Ideally suited for small to midsize banks looking to digitize their operations and fully embrace a data-driven, AI-powered approach in their lending business.

TIMVERO OS is a revolutionary lending operating system, meticulously designed to address the evolving needs of the lending industry. It comprises three seamlessly integrable solutions: Origination Software, Analytics Software, and Servicing Software, providing banks with a cohesive platform to efficiently manage and tailor their credit operations.

Central to TIMVERO OS is its state-of-the-art xAI (explainable AI) analytics framework and an advanced financial engineering module. These components bring tangible improvements to the credit business landscape, enabling banks to make rapid executive decisions, outpacing traditional methods by a factor of 12, and realizing an average profit increase of 20% per loan. The platform’s adaptability is further bolstered by its original SDK, administrative capabilities, and a data layer featuring over 90 pre-configured data providers for comprehensive underwriting, credit scoring, and transaction analysis.

Pros:

• Speed and Efficiency: Significantly reduces decision-making time, enabling swift executive decisions.
• Profit Maximization: Demonstrates a substantial increase in profit margins per loan through effective financial engineering.
• Customization and Flexibility: Provides extensive customization options via SDKs and admin-side features, catering to specific bank needs.
• Comprehensive Data Integration: Access to over 90 ready-to-use data providers streamlines underwriting and credit scoring processes.
• Advanced Analytics: The xAI framework transforms complex data into actionable insights, optimizing credit business strategies.
• User-Centric Design: Adopts a B2B2C model, enhancing the end-user experience and fostering customer loyalty through a consolidated platform approach.
• Rapid Deployment: Pre-installed integrations facilitate the quick launch of robust lending systems within 2-3 months, significantly ahead of industry norms.

Cons:

• Complexity for Beginners: The extensive range of features and customization options may pose a steep learning curve for new users.
• Initial Setup Time: Despite rapid deployment, the initial setup and customization process can be time-consuming, necessitating careful planning and resource allocation.
• Resource Intensiveness: The comprehensive functionalities and high level of customization demand significant resource investment in terms of training and system management.

Verdict: TIMVERO OS emerges as a groundbreaking lending operating system, excelling in accelerating decision-making processes and boosting profit margins. With unparalleled flexibility and data integration capabilities, it offers a transformative solution for banks seeking innovation in their credit operations. While the initial investment in time and resources is substantial, TIMVERO OS has the potential to redefine the lending landscape, making it an intelligent choice for banks aiming to excel in their credit operations.

#2) Encompass

Best for mortgage companies looking to streamline their customer acquisition.

Encompass is software for loan origination that enables lenders to provide more loans with low risk. The platform contains a Loan Origination System (LOS) that might help lenders originate from more loans, make better business decisions, spend less money, and close loans faster.

Through an AI-driven solution, Encompass offers system-wide intelligent automation. It also makes lenders more responsive and enhances the borrower experience.

Additionally, the system’s URLA-readiness feature ensures smooth transitions and effective business operations. It offers lenders one place to go where they can get all the materials they need for better lending processes.

Encompass creates a secure, two-way connection between the loan officer and the borrower. Teams may now instantaneously access Encompass data without switching platforms.

Features:

• Customer engagement
• Loan origination and closing
• Secondary marketing
• Correspondent lending
• Data and analytics
• Encompass connector for Salesforce
• E-Signature
• Client management
• Compliance management

Pros:

• Robust Mortgage Solutions
• All-inclusive design: From a single system of record, solutions for every part of your organization.
• Leading-edge technologies.
• Open-ended and expandable Access to private data lakes, APIs, and the industry’s biggest partner network.
• Fully programmable for any lending channel without the need for programming.
• Manage paperwork and signatures to reduce audit risk.

Cons:

• The software has a severe learning curve.
• It might be intimidating to set it up for the first time.

Verdict: Look no further than Encompass if you’re seeking mortgage loan origination software to automate time-consuming manual procedures, such as data input, to originate and complete loans more quickly and reduce production costs.

Price: Request a quote

#3) nCino

Best for banks looking for a safe cloud-based solution that links the commercial loan origination process with the frontend CRM to enable a transparent and effective lending process to boost productivity and profitability.

nCino is a cloud-based bank operating system that provides services to credit unions, corporate banks, retail banks, and other financial institutions. It blends Customer Relationship Management (CRM), customer opening, loan origination, and deposit account functions with workflow and quick reporting capabilities.

Expanding loan capacity, lowering service costs and policy exclusions, and providing a complete view of the client relationship are the objectives of nCino. It may be altered to fit organizational goals.

A powerful technological platform with capabilities for machine learning and artificial intelligence is offered by nCino under the name nIQ. It takes the place of manual-based solutions and point solutions by seamlessly integrating with the bank’s core banking and transactional systems.

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The tools offered by nCino are cooperative, clever, and simple to use, saving organizations and clients time while completing loans, setting up accounts, handling onboarding, and other tasks.

Features:

• Tools for collaboration with partners and borrowers
• Syndications and participations
• Rules engine and loan auto decision
• Needs assessments
• Document management
• Credit analysis
• Integrations
• Compliance
• Automated policy exception

Pros:

• Provides robust and endless possibilities
• Offers powerful integration capabilities
• Simple to use and browse, with the ability to upload documents
• All the functions are available on the go
• Great customer support
• Excellent security features
• Reduction in operating cost

Cons:

• It could take a lot of time to learn how to use the tool efficiently
• It’s not beginner-friendly

Verdict: The nCino Commercial Loan Origination System (LOS) automates processes and procedures, provides real-time reporting, manages customer relationships (CRM), and manages digital documents to expedite the whole lending process. It is one of the best loan origination systems that is cost-effective and provides an intelligent solution.

Price: Request a quote

#4) Sageworks Lending

Best for credit unions and community banks who want a complete loan management system.

Sageworks Lending Solutions is a complete loan management system for new companies and corporations. Small business financing, consumer lending, and loans for construction comprise its four divisions.

While preserving the portfolio’s quality, banks, and credit unions may record loans more quickly using Sageworks Lending Solutions. Each loan created using Sageworks may be analyzed, developed, and priced more effectively if it is based on automated templates and standards that provide uniformity and thorough documentation.

Sageworks Lending Software provides banks and credit unions the resources and assistance they need to grow by enabling teams to work more effectively.

While providing swift and creditworthy decisions, the Abrigo consumer loan origination platform enables businesses to concentrate on member or customer interactions.

Features:

• Lending Process Management
• Integrated CRM
• Secure document management
• Pipeline reporting and task notification
• Automatic loan decision templates
• Consumer dynamic loan application

Pros:

• Offers numerous flexibilities to fit different needs
• Multiple built-in third-party integration points
• Fully customizable
• The platform is straightforward to use
• Responsive and friendly customer support
• Excellent workflows
• Intuitive product modules

Cons:

• Modules implementation can be time-consuming.
• The document library would be better.
• Not ideal for smaller institutions.

Verdict: Sageworks Lending Solution is a complete loan management system that offers numerous flexibilities and hence can be fit for different needs. It is a completely customizable solution and straightforward to use.

Price: Request a quote

#5) LendingPad

Best for brokers, lenders, and processing centers looking to maximize productivity.

LendingPad, a cloud-based mortgage loan origination system (LOS), helps businesses manage and streamline loan origination processes while raising customer satisfaction.

Versions tailored to brokers, lenders, banks, credit unions, and institutions offer to improve real-time task coordination while reducing overall operational expenses.

Brokers can utilize the application to begin loan processes from any location, and they can add an unlimited number of users and branches to assist in managing and streamlining lead flow.

Additionally, it helps bankers to manage warehousing tasks, loan inventory management, post-closing audits, and other associated procedures, as well as additional work with investors. Institutions can use the dashboard of the centralized portal to monitor the processing of omnichannel pipelines and multi-user apps.

Features:

• User Role Workflow and Document Management
• Campaign Management, Real-time Connection to Lead Providers
• Unlimited Number of Users and Branches
• Secondary, QC, Closing, Warehousing, and Post Closing Functions
• Customized Workflows and Configurations
• Dedicated Account Managers
• Unlimited Documents, Data Transfer, and Archiving Options
• Direct and third-party channels
• Instant scalability

Pros:

• Easy to use and intuitive
• Custom reporting
• Responsive customer support
• Easy integrations
• Excellent workflows
• Use anywhere
• Easy and fast to implement
• Live data updates

Cons:

• Minor glitches could be improved
• A few additional features would be great

Verdict: In terms of usability and usefulness, LendingPad is a great LOS. Compared to similar software solutions from competitors, it is considerably simpler to browse and complete tasks. A major benefit is a capability for several people to collaborate on a loan file locally or remotely.

If this is your first time utilizing origination software, you should pay close attention to LendingPad.

Price: Request a quote

#6) Byte

Best for larger enterprises with more demanding IT requirements.

Byte is a mortgage loan origination tool that gives total control over loan procedures to production leaders, operation leaders, compliance teams, and IT & Administrators.

The software’s macro-based automation and validation criteria, which make it possible to quickly adapt procedures with internal teams, are empowering for IT employees and LOS administrators.

Lenders have several chances to use the flexibility provided by Byte’s automation capabilities to quickly accomplish their operational process objectives.

Byte delivers a world of intricate modifications and scalability for larger enterprises with more demanding IT requirements. However, it also features a flexible architecture that makes managing it with a smaller admin team easier than you ever dreamed.

Features:

• Role-based Permissions and Access
• NMLS and HMDA Reporting
• Multi-Lien Loan Synchronization
• Change of Circumstance
• TRID Compliance Lights
• Lock and UW Change Management
• Field History and Audit Log
• Workflows Customization and Automation
• Import and Export Efficiency
• Multi-User Editing Functionality
• Access Byte on the Go

Pros:

• The software is flexible and fully customizable.
• This program is straightforward, user-friendly, and simple to use.
• The procedure of importing files is quite easy.
• Data entry is simple and rapid.
• Support is excellent and quick to respond.
• The software has a very user-friendly design and is adaptable.

Cons:

• Customization can be overwhelming.
• The software’s responsiveness could be better.

Verdict: Byte enables you to fully manage your lending experience while maintaining consistency. Additionally, it offers a high level of customization that lets you work as you wish. If you want mortgage loan processing software with effective administrator controls and a simple user interface, give it a go.

Price: Request a quote

#7) Floify

Best for mortgage automation.

The mortgage industry created a cloud-based point-of-sale system Floify to manage and automate all loan origination processes. It is the best mortgage point-of-sale system on the market and expedites the loan application process by providing a secure communication and document portal between the lender, borrower, and other mortgage participants.

Loan originators may use the software to gather and verify borrower documentation, keep track of loan progress, communicate with borrowers and real estate brokers, and efficiently close deals.

It enables businesses to create customized 1003 apps and expedite processes by handling creditors’ and borrowers’ eConsent through an online interface. It also provides users with white-label alternatives for trademarking their iOS and Android mobile apps.

Floify connects with several third-party programs, including Encompass, Calyx, Byte, LendingQB, Docusign, DropBox, and Google Drive. Borrowers may conveniently submit a loan application, add supporting documents, eSign disclosures, and track the status of their loan – all in one convenient place.

Features:

• Loan Document Management
• Mobile Responsive Design
• Custom Fields and Layouts
• eSignature
• Business Rules and Logic
• Progressive Web Apps
• Communication (milestone updates, deadlines, notifications, agents and stakeholders, office collaboration)
• 1003 Loan Application
• Disclosure desk
• Third-party Integration
• Mobile apps

Pros:

• Excellent document management
• It’s straightforward to use
• Customizable
• Easy to keep parties updated through milestones
• Intuitive user interface
• Functional templates are useful
• Great customer support
• Ease of use on the go

Cons:

• The mobile app can be better.
• Can be quite overwhelming for beginners.

Verdict: Look no further than Floify if you need mortgage loan origination software with a secure document gateway, an automated platform for notifying borrowers and agents, and several productivity interfaces.

Price: Starts at $70 per month billed annually.

#8) Velocity

Best for brokers and brokerage owners looking for intuitive document intake loan origination software.

Velocity oversees the entire mortgage business with a single automated system. Therefore, a wide range of hosted and licensed systems solutions may be used to enable fast, straight-through processing of mortgage applications from the initial customer inquiry to the final mortgage advance.

With the help of the software, brokers may submit documents to lenders, send applications to lenders, get credit reports, securely store client data, inform applicants of circumstances, and send automated emails and newsletters.

To speed up the process and automate the collection of e-signed authorizations via the secure document gateway, clients can opt to have their income tax documents obtained on their behalf.

Features:

• Document Management and Storage
• Direct Lender Connectivity
• Client Experience
• Email Wizard
• Correspondence Tracking
• Contacts Summary
• Deal Dashboard
• Compliance and Payroll Integration
• CRM with Template and Campaign Customization
• E-Sign
• Connect to Third-party CRM
• SMS/Text Integration

Pros:

• Easy to use and simple to learn
• Customer-friendly language
• Intuitive client layout
• Provides an entire picture of the business, from data entry to the conclusion.
• It is cloud-based, protecting the privacy and security of your client’s information.
• Available from any location
• Completes the procedure for mortgage approval.
• Automated reporting

Cons:

• It’s only available in Canada.

Verdict: Velocity enables you to centrally and automatically manage all aspects of your mortgage company. Check out Velocity if you have a small to medium-sized team and need a solution to assist manage all important data and documents as well as offer workflow reminders.

Price: Request a quote

#9) Bryt

Best for professional lenders and non-lenders searching for an easy way to automate, monitor and track loans.

Finance professionals may complete tasks like loan origination, loan servicing, document generation, storage, trust accounting, payment processing, and more with the aid of a cloud-based Bryt loan management software solution.

Bryt’s services allow users to handle loan paperwork, processes, special fee structures, client notifications, automated clearing house (ACH) payments, client interactions, document sharing, and more while automating tasks.

The Professional Edition of Bryt Software will be suitable for lending professionals looking for a feature-rich, user-friendly loan management solution.

Bryt offers both borrowers and lenders/investors real-time online data, assisting in monitoring operations and maintaining compliance. Additionally, it gives lenders the ability to approve loans, create customized payback schedules, and create pipelines.

Features:

• Custom User Field Module
• Custom Documents Template Module
• Impound/Escrow Module
• Asset and Insurance Tracking Module
• ACH Module
• Lender Service Fee Module
• Borrower Portal Module
• Multi-Lender/Investor Module
• Investor Portal Module
• Custom Report Writer Module
• API Module

Note that these features are fully available only on Professional and Enterprise Versions.

Pros:

• Transparent pricing
• Great customer service
• Cloud-based
• Statements and payment reminders
• Simple and intuitive to use
• Zero contracts
• Excellent loan servicing and reporting

Cons:

• Additional features to the software would be great

Verdict: Check Bryt out if you want origination software with an intuitive interface, it’s easy to adopt, and straightforward and transparent pricing.

Price: Starts at $29/month/user (personal version), $59/month (Business version), $130/month (Professional version), and $500/month (Enterprise version).

#10) TurnKey Lender

Best for banks, FinTech startups, telecoms, alternative lenders, and retailers.

TurnKey Lender fully automates the entire lending process, which includes loan application and borrower assessment as well as origination, underwriting, servicing, collection, reporting, compliance, and other procedures.

TurnKey Lender offers help with loan origination, a program that makes use of cutting-edge AI techniques such as deep learning and machine learning. With this technique, loan decisions may be made quickly and with great decision-making quality.

A configurable loan application process enables the flexibility to design unique application procedures, vocabulary, and loan offers.

Features:

• Digital Onboarding
• Auto Loan Application Processing
• Credit Scoring and Automatic Decisioning
• Anti-Money Laundering and KYC Compliance checks
• Advanced Analytics and Management Capabilities
• Adjustable Online Application Flow

Pros:

• Flexible system
• Easy to adopt and use
• Responsive customer support
• Great customer interface
• Easy document collection
• Excellent automation
• Customizable

Cons:

• Third-party integrations could be better.

Verdict: We’d suggest TurnKey to anyone looking for an end-to-end loan management solution that is cloud-based, AI-powered, and interacts with a wide range of preconfigured partners.

Price: Request a quote

#11) Loansifter

Best for mortgage brokers.

Using the Loansifter PPE platform for financing services, businesses may determine the price and eligibility of items under various financial conditions. Mortgage brokers may create compensation plans using the Price Manager tool that is based on state, investor, property, and other factors.

Managers may put good lending practices into practice and customize the search function with the help of Loansifter PPE. Among other loan origination systems, the platform is connected to Encompass and Calyx Point.

Features:

• Access 120+ wholesale investors
• Connect with Loan Origination Systems
• Access Current Rates in Real Time
• Manage and Create Contacts
• Display Accurate Pricing on Your Website

Verdict: Pick Loansifter if you are a mortgage broker looking for mortgage loan processing software with advanced pricing manager functionality, customization options, additional add-ons to enhance primary features, and straightforward pricing.

Price: $79/month

FAQs on Software for Loan Origination

Conclusion

Systematic investments in loan origination are necessary for financial organizations. To enhance the customer or member experience and streamline the lending process, it’s crucial to make sure a LOS provides essential features and capabilities.

Selecting the finest loan origination software shouldn’t be a hassle anymore. Encompass is highly recommended for its strong features and comprehensive mortgage solution.

On the other hand, nCino is perfect for people who desire a flexible program with limitless possibilities. Last but not least, if you’re seeking loan origination software that is completely customizable, Sageworks Lending would be the perfect option.

Research Process:

• Time Taken to Research and Write this Article: We spent 28 hours researching and writing this article so you can get a useful summarized list of tools with a comparison of each for your quick review.
• Total Tools Researched Online: 35
• Top Tools Shortlisted for Review: 10