A recent report from STRATMOR Group reveals that upwards of 30% of mortgage lenders are dissatisfied with their loan origination system (LOS).
Only 28% of lenders say they are “very satisfied” with their LOS, with no plans to replace it, according to the company’s December report.
Although this is not radically different when compared with survey results from previous years, this year’s survey reveals that the extremes of satisfaction and dissatisfaction widened when compared with 2015.
“Last year, the STRATMOR Technology Insight Survey found just over 27 percent of lenders were ‘very satisfied’ with their LOS,” says Matt Lind, senior partner with STRATMOR, in a statement. “This year, the share who felt this way rose to 28 percent – a very modest increase.
“However, we find such a low rate of total satisfaction to be indicative of the decidedly mixed – if not downright depressing – results of this year’s survey,” he adds. “The largest group of respondents, 42 percent, indicated that they are just ‘somewhat satisfied.’ While not actively looking to replace their LOS, their responses indicate these lenders aren’t what you’d call ‘raving fans’ either. Over time, we would expect many of these lenders to start to actively look for a new system.
“Worst of all,” Lind continues, “despite the incredible operational disruption that comes hand in hand with a system change, 30 percent of lenders said they were not satisfied with their LOS – an increase from 28.7 percent in 2015. Of these, 19 percent are actively seeking a replacement for their current system, and 11 percent are already in the process of implementing a new LOS regardless of the fact that such a change can consume significant resources and disrupt an otherwise thriving mortgage origination platform. On each of these points, we’ve observed a slight increase over 2015’s findings.”