Building More Power Into the Lender’s LOS

One of the most notable shifts we’ve seen in mortgage technology is the integration of traditionally separate functions directly into loan origination systems (LOS). The integration teams that once existed around the country to connect various systems together to enable lenders to operate have largely been replaced with stronger LOSs.

What once required standalone software or external providers is now seamlessly built into a unified platform, reducing complexity and improving efficiency for lenders.

The days of a lender having to contract with different external service providers for document preparation, quality assurance (QA), and quality control (QC) are now over. These disparate processes were not only time-consuming but also placed significant responsibility on lenders to manage multiple systems and vendors.

Today, modern LOS platforms like the Mortgage Cadence Platform (MCP) incorporate these critical functions, eliminating the need for external providers. This integration ensures that loan documents are not only generated accurately but also tested thoroughly within the system. It makes for a much stronger LOS.

Reducing the Testing Burden

Lenders face immense pressure to ensure that every document and calculation in the loan process is accurate, especially given the regulatory scrutiny from agencies like the CFPB. The responsibility for compliance ultimately falls on the lender, making robust testing a necessity.

By integrating advanced testing capabilities into the LOS, Mortgage Cadence is reducing this burden. The system now tests documents as they are generated, ensuring that values are accurate, calculations are correct, and formatting issues are addressed. For example, AI-powered tools within the LOS check that documents render correctly—whether a calculation appears on the right column of page one or shifts incorrectly to page two, the system detects and corrects such errors before they reach the lender’s desk.

This level of built-in functionality allows lenders to rely on their LOS as a partner in compliance, reducing their workload while increasing confidence in the results.

A Collaborative Approach

Modern LOS providers are not just offering tools but are adopting a collaborative approach with their clients. By understanding how lenders currently test their processes, providers can tailor the system to reduce the effort required on the lender’s part. This "hand-in-hand" approach ensures that the LOS not only meets the lender’s needs but also enhances their ability to absorb and implement new functionalities quickly.

For example, testing loan documents used to involve significant manual effort—eyeballing values, verifying calculations, and ensuring proper formatting. With MCP, these tasks are handled by the system, which uses AI to test documents. This includes everything from validating formulas to ensuring that documents comply with state-specific requirements.

This is possible because Mortgage Cadence testers have trained our platform on every loan document a lender might receive or be called upon to generate. Our system has a 90% accuracy rate of knowing exactly what documents are flowing through its system.

By the time documents are delivered to the lender, they have already been rigorously tested, reducing the chance of errors and instilling greater trust in the system.

Moving Toward Complete Automation

The ultimate goal is to create systems that can handle nearly all aspects of the loan process autonomously. While achieving 100% automation is a long-term aspiration, the current capabilities are already transformative. The integration of QA/QC, document preparation, and compliance checks into the LOS represents a significant step toward this vision.

For lenders, this means fewer dependencies on external providers and less manual intervention in their workflows. By building more power into the LOS, providers are empowering lenders to focus on their core business—delivering exceptional service to borrowers.

The days of juggling multiple vendors and systems are fading, replaced by a streamlined, integrated future powered by innovative LOS technology. To learn more about what this kind of power can do for your mortgage lending business, reach out to Mortgage Cadence today.

By Monika Bhatla, Head of Quality at Mortgage Cadence 

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Mortgage Cadence: 
Alison Flaig 
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(919) 906-9738