The choice of mortgage banking specific accounting systems, has for the longest time, been very limited. Mortgage bankers have been forced to use systems that are either outdated or simply not designed for their industry, essentially increasing their workloads and limiting their reporting capabilities. Luckily, there has been a new development in mortgage accounting software that is quickly transforming the mortgage banking accounting industry.
With an application that is specifically designed with mortgage banking accounting needs in mind, it has never been easier to account for and report against loan level transactions, allowing banks to increase their accounting productivity and not the number of employees they require, whilst strengthening senior executives control on the business. It is no longer necessary to rely on a combination of non-industry specific accounting packages with productivity tools such as Excel to perform simple accounting functions such as loan level P & L’s, budgeting and fixed asset tracking.
Features That Make the Mortgage Loan Accounting Software Favorable
Easy tracking of all account transactions: Being able to report against individual loan level transactions is essential to understanding a mortgage banking business. Keeping manual records to that effect was always a daunting task, not only from a workload standpoint but also from a risk perspective. These issues are now a thing of the past for all mortgage loan originators who implement one of the mortgage accounting applications available. Seamless integration into organizations’ loan origination software, allows for the transfer of key data, quickly and efficiently without the need for repeated manual entry of data.
Reduce Manual Workload and Reduce the Risk of Human Error: With mortgage loan accounting software, you can reduce the manual workload, therefor reducing the risk of human error. Accounting for hundreds or thousands of loans, using outdated or non-industry specific platforms, makes for a large amount of manual data entry. The right mortgage loan accounting software can automate and streamline this workflow, reducing inaccuracies along the way.
Flexibility and Scalability is key: In an ever changing business environment, utilizing scalable and flexible applications is key. Smaller mortgage banks that need the control and protection that an industry specific solution can bring without the enterprise level price should be able to leveraging technology through cloud deployments and subscription pricing. Large organizations that look for the robustness of an enterprise solution, without the price tag and risk of building something themselves must consider an industry focused solution.
Key Additional Functionally: Loan level functionality is essential, but so is the ability to manage other areas of the accounting process easily through one system. Mortgage loan accounting software that combines the necessary mortgage specific functionality with advanced accounting features such as purchase order workflow, budgeting, fixed asset management and document management are the sensible choice for mortgage banks.