MeridianLink–Unmasking Hidden Costs in Your Mortgage LOS (sponsored content)

Sponsored by: MeridianLink

The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the content herein. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.

Almost half (45%) of Americans shop for other options before getting a mortgage through their primary financial institution. And while, of course, some of this comes down to cost given the level of concern around housing affordability, the results from a MeridianLink® survey of over 1,000 Americans reveals that a lack of process guidance, education, and other forms of mortgage lending support are factors as well.

For mortgage lenders, striking a balance between cost-effectiveness and delivering an unparalleled borrower experience is paramount. To achieve this delicate equilibrium without compromising on return on investment (ROI), it becomes imperative to scrutinize the effectiveness of your current mortgage loan origination system (LOS). Assessing how well your LOS positions you for success and evaluating the total cost of ownership in achieving these goals can be the key to elevating your standing in the industry.

Assessing the trust cost:

Challenges such as maintenance burdens, resource-intensive tasks, rising operational costs, or their amalgamation can significantly impact the effectiveness of your operation and your ability to provide borrowers with the mortgage lending support they need. While scrutinizing financial aspects like upfront costs, ongoing maintenance fees, professional services, and potential staff additions is crucial, it’s imperative to recognize that these elements only scratch the surface of your total cost of ownership (TCO).

JP Kelly, Senior Vice President, Mortgage at MeridianLink, emphasizes the critical need for mortgage lenders to swiftly adapt to market dynamics. “Leveraging periods of lower volumes to innovate and streamline processes ensures mortgage lenders remain at the forefront of industry advancements, ready to meet the evolving needs of borrowers and capitalize on market recovery.”

A holistic examination of TCO goes beyond monetary considerations and investigates the profound impact of increased efficiency, error reduction, streamlined user workflows, automation, and a seamless borrower experience on your overall return on investment (ROI).

To start your TCO calculation, consider the following questions:

1. Does your existing system demand highly experienced system administrators or technical staff,

such as developers, for maintenance, operational stability, and release management?

2. Are you incurring expenses for third-party product pricing engines (PPEs), point-of-sale (POS) solutions, or optimizing automation, task-based workflows, and screen customizations?

3. Are system latency issues hindering your operational efficiency?

4. Does your mortgage LOS receive regular product updates and feature enhancements?

5. Is your mortgage LOS entirely browser-based and cloud-native, or does it necessitate local installation?

By addressing these critical points, you can uncover the intricacies of your mortgage lending ecosystem and strategically lay the foundation for sustainable growth and improved ROI.

Your mortgage LOS is costing you more than you thought. Now what?

If your mortgage LOS is revealing unexpected costs, it can add to the challenges posed by the high cost of origination, which is now upwards of $11,000. Now that you have a clearer understanding of the actual impact on your bottom line, addressing the situation becomes a strategic imperative.

Yet, amidst the demanding task of navigating market changes and overseeing day-to-day operations, undertaking a comprehensive evaluation, and implementing a new mortgage lending solution may seem like an impossibility.

However, the road to optimization doesn’t have to be insurmountable! To streamline this process, we’ve curated a practical shopping list, meticulously designed to eliminate guesswork. This guide aims to assist you in pinpointing the essential qualities required in a modern mortgage LOS. Here’s a glimpse into this strategic evaluation, featuring five key questions tailored for your potential new mortgage LOS partner.

1. Is the mortgage LOS modern, browser-based, and cloud-native?

Today’s borrowers demand a fast, frictionless digital journey with a personalized touch. Browser-based, cloud-native mortgage technology solutions can help you meet those expectations by not only enhancing operational efficiency but also reducing costs, boosting ROI, and prioritizing the borrower’s experience. Moreover, these solutions can offer improved scalability, reliability, and performance, ensuring seamless operations even during peak demand periods and maintaining trust with borrowers through consistent service delivery.

2. Are point-of-sale capabilities prioritized or merely an afterthought?

Point-of-sale (POS) solutions that integrate with your mortgage LOS empower you to create powerful, personalized borrower-facing experiences with ease, resulting in lower loan-manufacturing costs, improved pull-through rates, and faster closing times.

3. How configurable and flexible is the mortgage LOS?

Your mortgage LOS should help you elevate efficiency and innovation on your terms without incurring extra expenses such as professional services or third-party fees. Look for capabilities like a native pricing engine, built-in document management, configurable workflows, and role-based navigations to help your institution scale and evolve with flexibility and financial prudence.

4. Are there any time-saving, advanced automations?

Manual tasks can take up valuable time, resources, and revenue, hampering your operation’s efficiency and profitability. Your new mortgage LOS should provide user-friendly workflows and automations that streamline tasks while offering robust customization options that help you maintain full control of processes. The result? Easier, faster operations without sacrificing accuracy.

5. How comprehensive are reporting and analytics?

Robust data analytics and reporting are crucial to keeping your mortgage business healthy, giving you insights into borrower trends and issues that can help you optimize performance for enhanced effectiveness. Before committing to a new mortgage LOS, be sure to examine analytics and reporting functions, as well as real-time dashboards and other data-driven features, to ensure the technology can help you truly enhance borrower experiences and boost revenue.

Collectively, these ten questions empower your institution to assess whether it’s time to part ways with legacy systems and guide you in selecting a modern mortgage solution that aligns seamlessly with your evolving needs and the needs of your borrowers.

Want to learn more? Check out the full mortgage LOS shopping list here or contact us to continue the conversation:

(Sponsored content includes material submitted independently of the Mortgage Bankers Association and MBA NewsLink and does not connote an MBA endorsement of a specific company, product or service. For more information about sponsored content opportunities, contact Bill Farmakis at or 203/834-8832.)