Sector Spotlight: Mortgage LOS

Sector Spotlight: Mortgage LOS

March 20, 2025

Mortgage loan origination systems (LOS) are designed to facilitate the production of high-quality mortgage loans through automation and by helping bank and credit union employees process their loan pipelines. Mortgage LOS typically manage loan documents; handle risk assessment and underwriting, pricing, closing, and funding; and sync relevant data back to the core. They orchestrate data from different sources for KYC, income verification, and credit checks, and help to ensure compliance with regulations. A mortgage LOS may include point of sale features for application intake, document processing, tracking, and customer interactions.

What’s going on in mortgage LOS

Mortgage LOS have increasingly digitized a paper-based, manual process and consolidated disparate electronic systems under a single application. They’ve centralized mortgage origination steps, added modules for additional features, and integrated more data sources. Many mortgage LOS have evolved beyond the sole use of in-house modules to integrate with third-party, best of breed applications. Those applications may, for example, provide functionality for identity verification, credit checks, CRM, document ingestion and generation, or e-sign tools. Some third-party platforms have taken over the interface for features that might otherwise be directly integrated with the LOS, like POS or business intelligence.

Mortgage LOS vendor snapshot

The mortgage LOS space for banks and credit unions is a mix of solutions from core providers and third-party vendors. A bank or credit union’s choices of mortgage LOS will depend on their business and functional requirements.

Here’s a snapshot of mortgage LOS and the companies that offer them. It does not include all mortgage LOS providers; we exclude core providers because they offer many of their own solutions and have preferred partners. Many third-party mortgage LOS solutions cite nonbank lenders as customers; we cover only mortgage LOS that cite bank or credit union clients by name or confirmed a client base to CCG Catalyst:

BankPoint: BankPoint offers mortgage origination features as part of a larger group of tools that focus on lending, including origination, loan management, reporting, and compliance. It has LOS features including document collection, pipeline management, and loan review.
Byte Software: Byte is the sole product of its eponymous parent company. It advertises origination, processing, underwriting, closing, and funding, and emphasizes partner integrations. It further advertises process tools and compliance controls and the ability to create, customize, and manage automation rules.
Calyx Software: Calyx is a specialized provider of mortgage origination solutions, including more than one LOS and a standalone POS. Its Path product is marketed specifically to mortgage bankers, and the company advertises a POS as built-in (Zenly is its standalone POS).
Dark Matter Technologies: Dark Matter provides mortgage LOS solutions and complementary software. Its key products are NOVA, which is advertised as a relatively simple out-of-the box LOS designed to be easy to configure, and Empower, which is a more complex solution for enterprise and mid-tier lenders.
ICE Mortgage Technology: ICE offers a long list of mortgage software for different types of businesses. Encompass is ICE Mortgage’s end-to-end loan platform, which includes origination, POS, pipeline management and reporting, third-party mortgage origination, a product and pricing engine, electronic closing, and a CRM.
MeridanLink: MeridianLink provides a broad suite of products focused on consumer lending, including collections and business intelligence. MeridianLink Mortgage is an LOS that specifically advertises modules for loan pricing and electronic documentation and supports integrations with third parties.
nCino: nCino offers a broad set of solutions for banks and credit unions. nCino Consumer Lending is the company’s LOS for consumer loans, including mortgages. The company also offers Mortgage Suite, a separate but related set of products, including a POS, analytics tool, and incentive compensation management.
Newgen: NewGen offers several groups of solutions that extend to industries beyond noninsurance financial companies. Newgen LOS is a loan origination system that advertises support for originating personal, student, vehicle, and mortgage loans.

What to look for in mortgage LOS

Modules: Features or add-ons designed specifically for the LOS or suites of in-house lending, reporting, or administrative tools that augment or supersede LOS capabilities.

Customization: Ability for mortgage employees to build custom workflows and configure settings, with engineering resources or without extensive technical support.

Automation: Accelerated data entry and document management, straight-through KYC and risk scoring, case routing, and on the POS side, automatic follow-ups with customers.

Third-party integrations: Ability to integrate out of the box with diverse and sophisticated software outside the LOS provider’s ecosystem and the LOS.

Bank and credit union focus: Demonstrated experience with depository institutions and a sizeable customer base of bank and credit unions that originate mortgages.

CCG Catalyst’s Sector Spotlights highlight third-party solutions, products, and the companies that offer them. They provide a snapshot of the latest innovations, trends, and key players within the financial services industry.

Sector Spotlight: Mortgage LOS

Sector Spotlight: Mortgage LOS

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