According to a survey conducted by compliance software provider QuestSoft, of 461 lenders sampled nationwide, 18.7 percent of mortgage lenders are considering changing their loan origination software (LOS) in the next 12 months. This is the highest percentage looking to switch in the six years QuestSoft has been conducting its annual survey. When QuestSoft began conducting its annual compliance and technology survey in 2008, the number of lenders considering replacing their LOS remained consistently around 10 percent each year (22 of 207 lenders in the survey’s first year). However, last year, the percentage of lenders jumped to 17.75 percent, with a new high of 18.7 percent looking to change this year.
“One of the factors in seeing more LOS changes is the reduced expense of implementation and conversion offered by hosted software companies,” said Leonard Ryan, president and founder of QuestSoft. “Another factor may be the result of acquisitions. As LOS vendors have merged, acquired customers may be using the change as an opportunity to evaluate their platforms.”
Ryan added that many lenders also said they place a high priority on LOS providers that have comprehensive compliance functionality. QuestSoft currently integrates with more than 40 leading LOS platforms, and the LOS systems integrated with QuestSoft's flagship product, Compliance EAGLE, are able to provide a simple interface that automates the evaluation of a loan file against a comprehensive suite of more than 300 federal and state compliance regulations representing more than 10,000 pages of standards.