Greenwood Village, Colorado-based SS STRATMOR Group announced on Sept. 23 that some time next year, it would be introducing a standardized, independent comparison methodology for measuring industry-available loan origination systems (LOS). The methodology will be called LOS Performance Shootout Methodology.
STRATMOR published an article on the proposed methodology in its STRATMOR Insights report. Len Tichy, senior partner and head of STRATMOR's IT and Operations Advisory Services, authored the article that addresses the failure of the industry, up until now, to develop a credible methodology for measuring the return on investment for competing loan origination systems.
Tichy said, "We know that this sort of comparison will require the participation of the lender community, and we invite all interested parties to contact us for details on taking part." He added, "We also know that applying this type of comparison would be impossible without the willing cooperation of the LOS providers themselves, so we look forward to engaging with vendors on this project as well."
In 2017 STRATMOR plans to launch its standardized LOS-comparison methodology. A press release describes the approach it will take: "By defining criteria for testing how subject-LOS solutions (including a lender's incumbent system) perform in specific loan production scenarios, STRATMOR will allow for 'apples to apples' comparison between or among LOS solutions."
The release adds, "Three to four key...