Custom Loan Origination Software

ML, RPA, and image analysis technologies are employed to automatically capture and process omnichannel loan applications and borrower documents (IDs, bank statements, tax returns, W-2 forms, purchase agreements, collateral documentation, etc.). The software handles documents in various formats: PDF, JSON, XML, digital image, paper, and handwritten text.

Borrowers get automatically pre-qualified against the lender’s eligibility criteria (location, age, minimal monthly income, etc.) and region-specific KYC/AML requirements. Software cross-references the data provided by borrowers with the data from trusted public sources (e.g., credit rating platforms) to verify information accuracy.

Eligible loan applications are routed for processing to the best-fitting underwriters based on employee qualification, availability, location, etc. The software automatically generates loan approval forms containing the loan application and necessary borrower data. AI can be employed to monitor underwriter activities and instantly spot fraud.

The software automatically evaluates borrower credit risks, taking into account user-defined parameters like loan amount, a borrower’s credit history, income sustainability, default probability, and LGD. Risks can be scored based on custom statistical formulas or AI algorithms.

Collaterals for secured loans get automatically registered and linked to borrower accounts. AI is involved in estimating the value, liquidity, and risks of non-financial collaterals (e.g., real estate, vehicles, equipment) based on the available data on an asset’s state and asset market price.

Decisions on loan approval or decline are made based on a borrower’s credit score and requested loan terms (loan amount, repayment period, etc.) and can be automated using custom rules or AI. Questionable loan applications are routed for manual checks to avoid non-compliant decision-making.

AI-powered solutions provide suggestions on the optimal credit price (principal and interest amounts), loan limits, and repayment terms for each borrower. Loan-related decisions and credit terms are instantly communicated to borrowers, sales reps, and brokers via a role-specific lending app.

Loan officers can create custom loan agreement templates tailored by language, location, loan type, etc. The software automatically generates loan agreements with the pre-agreed funding, repayment, covenant, and penalty terms. The agreements are signed using a digital signature.

For mortgage deals, the software calculates a down payment, an escrow deposit, APR, and closing-associated fees. It automatically generates mortgage amortization schedules, closing disclosure documents, and deeds of trust and sends them to borrowers and local title registration authorities.

Once a loan is approved, the software generates a funds booking request and submits it to the accounting system. Funds are transferred to borrowers ad hoc or by a user-defined schedule. The solution also automates the payment of loan-associated fees like a credit report fee, an owner’s title fee, etc.

The software enables real-time calculation, monitoring, and forecasting of all necessary loan origination KPIs: average loan amount, loan approval rate, delinquency rate, default rate, and more.

Credit disclosure reports in the compliant format (e.g., Metro2 for the US) are automatically generated and submitted to the local credit bureaus (e.g., Experian, Equifax, or TransUnion for the US).

Custom loan origination software can provide compliance with all relevant lending regulations, such as TILA, RESPA, HDMA, and ECOA standards for the US, MCD requirements for the EU, SAMA requirements for the KSA, and more.

Loan origination software and the data it stores are protected via role-based access control, multi-factor authentication (incl. biometric authentication), data encryption (incl. hashing) in transit and at rest, intelligent UEBA, and more.