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Chloe Larson
From starting the loan origination to completing the loan request, the process for a loan can be messy, especially without proper organization. Loan officers know this well, which is why ICE Mortgage Technology created Encompass, a Loan Origination System (LOS) capable of integrating with CRM software such as Shape’s Mortgage CRM, to help organize the process of applying for a loan.
A Loan Origination System (LOS) is a software used by loan officers to manage the steps of a mortgage loan transaction, starting with the origination of the loan. Once the origination is completed, a typical LOS will also handle the pricing, fulfillment, eligibility, and document management of the loan. In general, a LOS will work in a step-by-step basis, guiding both the lender and borrower through the complete loan process.
In case you are unfamiliar with the term, Customer Relationship Management (CRM) Software refers to a cloud-based management system that connects all aspects of your business in one easy-to-use interface. Any member of your business can access real-time client data, allowing for seamless interaction between various sections of your company. CRM software can be downloaded from anywhere, so employees working from home can use the software and still access client data from the cloud. If you still have questions about CRM software, you can check out Shape CRM{link to informational page about Shape CRM} an in-depth look at what CRM software can do.
Encompass is a Loan Origination System (LOS) made by ICE Mortgage Technology, designed to assist loan officers through the loan application process. Through the use of artificial intelligence and next-generation data security, Encompass gives both lenders and borrowers a sense of security, while also streamlining the lending process to maximize efficiency. Encompass also provides GSE integration, which includes Freddie Mac’s Loan Product Advisor and Fannie Mae’s Day 1 Certainty initiatives.
According to the MBA, loan origination costs the lender an average of $8,000 per loan. This means that until the loan is finalized, the lending process is losing you money, and depending on the size of your clientele this amount may not be small. Encompass was designed with this in mind, speeding up the lending process to ensure faster ROI. To test this, MarketWise Advisors recently performed an independent study on Encompass LOS which concluded that, on average, lenders using Encompass:
Overall, most of these benefits were attributed to the increased productivity Encompass provided its users. In the words of Jordan Brown, CEO of MarketWise Advisors, LLC, “this study provides clear evidence that Encompass’ compliance capabilities, process automation, third-party service integrations and interoperability of a single system have a marked impact on the cost of origination.”
Ellie Mae president and CEO Jonathan Corr also had praise for Encompass, claiming that “by using technology to automate the complex mortgage process, study participants realized an annual return of 697 percent, that’s nearly seven dollars for every dollar invested. In many cases, that’s the difference between profit and loss for lenders.”
With the recent changes to the Universal Residential Loan Application (URLA), some people might hesitate to spend money on Encompass. This stems from the fear that if Encompass struggles to adapt to the changes in the loan industry, the many benefits it brings your lending business will be irrelevant.
Although this is a valid concern, you can rest assured with Encompass, as the support team at ICE Mortgage Technology strives to stay ahead of the curve—including the new URLA. Encompass is fully compatible with the new URLA, and ICE Mortgage Technology intends to constantly update its system and adapt to any upcoming changes in the loan industry.
Speaking of compatible, Encompass allows for complete integration with third-party CRM software, including Shape CRM. Although a LOS can still improve loan management without CRM software, using the two together gives your lenders even more control over the loan process.
Arguably the biggest benefit of using these two services together is the bi-directionality of the pair. Although some work better than others, Encompass was designed to seamlessly integrate with any CRM software, allowing loans to be created automatically in Encompass from Shape, for approved documents to be pushed from Shape to Encompass, and for Encompass milestones to automatically update Shape’s status. For how this benefits you, consider the act of data entry.
Anytime your business interacts with a lead, client, or business partner, a certain amount of data needs to be entered or updated within your system. Contact information, loan applications, loan status, business data, or anything else relevant to these people will need to be properly documented. Without integrating a CRM software with Encompass, all of this data must be recorded separately in both Encompass and your company’s management system. Not only will this take time out of your day, but it could also lead to:
Any of these mistakes could cost you both time and money, and CRM integration with Encompass is an easy way to fix this. The bi-directionality of CRM software and Encompass can also benefit both your marketing and sales.
For any business, being proficient at lead generation and management is the first step in closing deals. This should be obvious, but if you don’t supply your sales team with quality leads, it can be challenging for them to sell your product or service. With CRM integration in Encompass, your marketing team will instantly receive a notification whenever someone submits a loan application through the customer portal, which will include the contact information of that person for outreach purposes. Applying for a loan is one of the best leads you can hope for in the lending business, so capitalizing on these leads is imperative. CRM integration can also automatically text or email the loan applier at specific points during the application process, further increasing the likelihood of a conversion.
For a short example of how Encompass with CRM integration can be used, consider the journey a potential customer may take after applying for a loan.
If your sales team is able to capitalize on the lead and close the deal, the CRM software will then assist you in onboarding your new client. Depending on your needs and the specific software that you are using, this can be done through custom forms, proposals, or contracts. For payment, most CRM software support invoices, while also giving automated payment reminders.
For lenders, CRM software often goes hand-in-hand with a Loan Origination System. They both improve your company’s overall business, however CRM software focuses on the framework of your company (communication, client management, marketing), while a LOS focuses on the actual service your company provides (loan process). All-in-all, CRM and LOS software compliment each other well, and work best when paired.
Encompass was designed to work with all types of CRM software, however some integrate better than others, such as Shape CRM. Unlike other CRM software, Shape CRM was developed with Loan Origination in mind, so it seamlessly integrates with LOS software, Encompass included. Because of this, your lenders can gain even more control of the loan origination process, saving your company both time and money.
Compared to other CRM software, Shape CRM integrates much smoother with Encompass. For example, a newly completed application can instantly create a new loan file in Encompass, either through a press of a button or an automated trigger from a status change. Creating a loan file this way saves users time, eliminates double entry or data entry errors while also allowing your marketing team to initiate follow-up drip campaigns immediately.
Shape CRM also allows for milestone tracking in Encompass. In short, Shape CRM can synchronize with the loan status as the loan progresses Encompass, giving your team updates whenever a certain milestone is hit. Shape CRM comes with several preset milestones, including but not limited to:
Shape CRM is highly customizable, so if there is a milestone you would like to be tracked that is not provided by default, Shape CRM will work with you to have that created. This can also be adjusted in Shape Software settings pages over time if workflows are adjusted in Encompass.
