E-mail :

Password :

Forgot Password? | Sign up for Free

Growing Loans with Lending Solutions

Posted by : Premraj | Posted on : Friday, December 5, 2014

Accounting
SHARE THIS
FACEBOOK

Credit unions are in a unique situation now to either move into a competitive position in the lending arena or get left behind as others take these roles. What can credit union management teams do to improve their lending potential and production? In a business environment that is constantly adapting to a fluctuating economic environment and as a result of improving technology, there are a few important lending solutions that credit unions should implement.

1.        Decrease the Gap Between Closing and Funding of Loans

In many ways, the speed of the loan process hangs on the borrower. They need to present their information accurately and fully. However, with the right software and with a reputable origination services provider, you can ensure that the work done on your end is completed as quickly as possible. The right provider will deliver a streamlined application process, software configured to your business, and powerful decision-making strategies.

2.       Improve Consistency Throughout the Lending Process

A powerful way to improve consistency is to thoroughly review the loan origination policies and procedures that you have in place. First, identify inconsistencies in your process and find conflicting policies, guidelines, and instructions. Resolve those inconsistences and bring policies and guidelines into line with each other. Next, review language to ensure that it is clear and carries the information that you intend. Finally, as management of the credit union, you should take steps to keep your employees versed in the current lending issues and the best solutions.

3.       Evaluate the Efficiency of Your Lending Process

Record the number of loans that are funded each month. Review audit reports and correct errors before the affect the credit union’s goals of increasing the number of loans as well as improving the quality of loans. It is also helpful to provide your employees with the ongoing training necessary to avoid gaps in understanding and to improve their ability to find new resources and solutions. These trainings should cover the specific functions of the loans that your credit union wants to provide.

4.       Get to Know Your Borrowers

The more information you can gather about prospective borrowers, the better able you will be to offer them the loans that are best for both of you. Without putting yourself at risk of fraud, buybacks, and compliance issues, you want to offer your borrowers with competitive rates and attractive terms. With the right software platform, you’ll be able to use the details of your borrowers’ applications to match up the best loan terms to the satisfaction of both parties.

5.       Use the Best Origination Software

It is imperative that you understand origination fees and services. The origination fee is charged to the borrower from the lender for the services of making the loan. The services provided include:

– Taking the loan application

– Processing loan applications

– underwriting

– funding loans

– related administrative services

According to cudirect.com, origination services offered through the right software will help your credit union to improve the rate at which you process loans, increase productivity, and reduce errors during processing. These features will naturally result in more efficient use of time and financial savings for the credit union. As you employ these lending solutions, you’ll find that your credit union can enjoy making more loans and making those loans that will be most beneficial to your financial growth.

Comments : Post a Comment | Category : Uncategorized | Tags :

Leave a Reply

Your email address will not be published. Required fields are marked *

*

* Copy This Password *

* Type Or Paste Password Here *

2,163,047 Spam Comments Blocked so far by Spam Free Wordpress

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Current month [email protected] day *

Free Budgeting software to better manage your money

Register for FREE, Learn More or Watch the Video