Many mortgage lenders invested in Customer Relationship Marketing (CRM) and Loan Origination System (LOS) technologies during the pandemic — when record demand meant that many mortgage originators didn’t have time to fully explore the potential of their new CRM and LOS technologies.
Thanks to interest rates doubling since 2020, many of today’s most successful mortgage loan officers are now working to learn and leverage the expansive capabilities of their institution’s CRM and LOS systems. The technology helps identify new prospects, market in more targeted ways, boost customer satisfaction and close more deals.
What’s the Difference Between CRM and LOS?
A mortgage CRM system serves as a central hub for managing customer data, tracking interactions and automating tasks related to marketing, including social media and direct mail.
A CRM can be either a part of the LOS or a separate system that works cooperatively with your LOS. The CRM functions are chiefly used to foster strong customer relationships and streamline management of the sales pipeline.
An LOS is crucial software that automates the lending process — from application to disbursement — enhancing efficiency and ensuring the loan meets all lender and regulatory guidelines. As the central system for loan originations, a lender’s LOS streamlines the workflow, reduces errors and lowers costs by digitizing and managing borrower data and documentation.
There are a long list of benefits to the more automated approaches provided by LOS and CRM technology:
- LOS systems are designed to manage the loan manufacturing process while ensuring closed loans comply with GSE or lender guidelines.
- Some LOS systems include functionality to automate repetitive tasks like ordering the credit report or GSE Automatic Underwriting System (AUS) analysis. This improves back office productivity and the overall customer experience, while also ensuring closed loans comply with Fannie Mae and Freddie Mac guidelines.
- A CRM helps identify solid prospects and executes marketing plans to boost lead generation and conversions via social media and traditional mail.
- CRM technology can help loan officers make a better impression with modern, user-friendly marketing materials and showcase their expertise with informative content, such as blogs, newsletters and videos.
- CRMs can provide more personalized service to borrowers by keeping track of their preferences and feedback and sending relevant messages to enhance customer loyalty and referrals.
- With a CRM system, mortgage originators can manage their referrals by tracking and rewarding their sources, such real estate agents and builders — helping the originator increase their brand awareness, reputation and encourage additional referrals.
- Some LOS and CRM systems support access through mobile devices enabling loan officers to deliver quick responses to customers’ questions, generate reports and request electronic signatures on the go. They can also prompt the loan officer to follow-up on customer questions and issues via email or text.
Arch MI’s LOS Integration
Arch MI is committed to providing customers with industry leading integration with numerous LOS and POS systems to help lenders save time by reducing repetitive data entry, obtaining delegated commitments faster and accessing real-time pricing that checks guideline eligibility.
The Insights blog is always interested in your feedback. Send us an email ([email protected]) to share the CRM/LOS solutions you’re using to connect with new customers and ensure a smooth loan process.