While mortgage brokers and borrowers generally feel a sense of closure once a loan has been funded and closed, loan asset owners and servicers know that their jobs have just begun. Not only must the loan be monitored and data analyzed as part of the risk management process, the loan may be subject to a myriad of regulations. Loan management software helps ensure that each loan in your portfolio receives the attention it deserves. Numerous applications exist including loan origination software and performance analytics tools. With the right solution and long-term strategy, you can use loan management software to service loans, comply with regulations, and grow your business.

How Loan Management Software Helps Service Loans
Servicing loans is complex, especially if you lack the tools to track and analyze loans. Loan management software can streamline the entire process for multiple loans. For example, software can automate the workflow from origination and funds distribution to payments, late fees, interest adjustments, collections and credit bureau reporting. Depending on the features of the loan management software you choose, automatic triggers can alert you to upcoming tasks or issues that need your immediate attention.

How Loan Management Software Helps with Compliance and Risk Management
Numerous regulations such as the new Fannie/Freddie servicing requirements add complexity to an already complex process. Maintaining files and spreadsheets is no longer sufficient. Today, you must analyze and segment risk and comply with an alphabet soup of governmental regulations.

Loan origination software can make your job easier by compiling data from multiple sources and incorporating data visualization tools to highlight areas that need action. Some software includes advanced features that allow you to model the risk of delinquency, default, loss of income, and other triggers. Behavioral models are also useful in identifying and prioritizing high risk, delinquent borrowers.

How Loan Management Software Helps Businesses Grow
Loan origination software can also help banks, credit unions, and mortgage bankers grow their businesses by delivering accurate, real-time business intelligence. From capturing and nurturing leads and prospects to credit profiles and pricing and eligibility tools, loan origination software can help you quickly assess a borrower's eligibility for your loan products and match them to the most appropriate loan.

Many of these programs serve as complete loan origination solutions with credit profiling, behavioral models, property valuation tools, third party data services, CRM, analytics, and reporting built in. Loan management software can also be used to present different loan scenarios to a borrower. With easy-to-use calculators and dashboards, a robust loan origination program can handle the heavy lifting while you nurture the prospects in the pipeline and build relationships.

Like the lending industry, loan management software has changed dramatically to keep up with the times. From the sales pipeline to risk management and regulatory compliance, managing and servicing loans requires a robust solution. Today's best loan management software incorporates traditional tools while adding business intelligence and data visualization to the mix.

Author's Bio: 

The author of this article knows the mortgage industry quite well and uses mortgage software everyday. Since the software is getting more advanced things like credit risk analytics are becoming better and better making investments more secure.