What is an LOS System? Understanding the Power of Loan Origination Systems

john • Mar 02, 2023

An LOS system, or Loan Origination System, is a software platform that manages the entire loan origination process for financial institutions such as banks, credit unions, and mortgage lenders. It automates the lending process and helps lenders streamline the loan application, underwriting, and funding processes.

The LOS system typically integrates with various third-party systems, such as credit bureaus and underwriting tools, to verify and evaluate borrowers' creditworthiness and eligibility for a loan. The system also tracks loan applications and manages the communication between the borrower, lender, and other parties involved in the lending process.
An LOS system can help lenders reduce the time and costs associated with loan origination, improve the accuracy of loan decisions, and ensure compliance with regulatory requirements. The system can also provide analytics and reporting capabilities that enable lenders to monitor and optimize their lending processes.

Why use an LOS system


There are several reasons why a financial institution such as a bank, credit union, or mortgage lender might use an LOS system. Here are some of the key benefits of using an LOS system:

  1. Streamlined loan origination process: An LOS system can automate and streamline the entire loan origination process, from application to funding, reducing manual processes, increasing efficiency, and decreasing the time required to process a loan.

  2. Improved accuracy and consistency: By automating loan decisions and workflows, an LOS system can help lenders ensure that loan applications are evaluated consistently and accurately, reducing errors and the risk of fraud.

  3. Better compliance: An LOS system can help lenders comply with regulatory requirements by providing documentation and audit trails that demonstrate compliance with regulations and guidelines.

  4. Enhanced customer experience: An LOS system can provide borrowers with a more convenient and streamlined application process, with automated notifications and self-service options that can improve the overall customer experience.

  5. Better data and reporting: An LOS system can provide lenders with detailed data and analytics on loan applications and origination processes, helping them to identify areas for improvement, optimize their lending processes, and make better-informed decisions.

Here are the top 10 LOS systems


Here are ten Loan Origination System (LOS) platforms used by financial institutions:

  1. Ellie Mae Encompass: A cloud-based LOS system that automates loan origination processes, including application processing, underwriting, and closing.

  2. Calyx Point: A mortgage LOS system that automates loan processing workflows and provides built-in compliance tools to help lenders stay up-to-date with regulatory requirements.

  3. BytePro: An LOS system that offers a customizable platform for managing loan origination processes, from application to funding.

  4. MortgageHippo: A cloud-based LOS system that provides a customizable workflow for managing loan origination and processing.

  5. LendingQB: A web-based LOS system that offers a customizable platform for managing loan origination workflows and data analytics.

  6. Fiserv LoanComplete: An LOS system that offers a comprehensive loan origination and servicing platform, including compliance and data management tools.

  7. MortgageFlex Systems: A LOS system that offers a customizable platform for managing loan origination workflows and data analytics.

  8. Tavant FinConnect: A cloud-based LOS system that offers a customizable platform for managing loan origination and processing workflows.

  9. LoanLogics : An LOS system that provides automated audit and compliance tools, as well as a customizable platform for managing loan origination workflows.

  10. Mortgage Cadence : An LOS system that offers a comprehensive platform for managing loan origination workflows, including automation and analytics tools.


Overall, an LOS system can help financial institutions improve their efficiency, accuracy, compliance, and customer experience, making it a valuable tool for lenders who want to stay competitive and provide high-quality lending services.

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