At the Mortgage Bankers Association (MBA) Annual Convention & Expo in Orlando in October, we spotted yet another new loan origination system (LOS) vendor. No surprise there, right? But we took some of the marketing material being handed out at the booth, which we carefully reviewed along with the company's Web site.

Clearly, it is an energetic company with talented people, but we found too many empty promises in the sales literature and believe it or not--some technobabble. The company made claims about how it "stumbled outside the box" and that its products "deliver new dimensions in computing" and "provide everything needed to break the loan folder logjam."

The material goes on about how the vendor is changing the LOS world--and yet not a single case study, time trial or customer testimony exists anywhere in the material. The vendor seemed to talk the talk, but provided nothing to back it up. Further, you could take its marketing spin and apply it to virtually any LOS product (but most established vendors wouldn't be so bold).

The company claims its product is "suited for the individual broker, yet meeting the needs of the biggest banks." This is simply impossible. Any LOS vendor and product must cater to one of three market segments: mortgage brokers, multibranch operations or large lenders (top 50). Each of these markets has significantly different requirements, such as what data are collected; which documents are produced; what regulatory requirements must be met; which reporting systems are needed; what levels of security are required, and so forth. Beyond the product differences, the entire technical support and sales aspects of an LOS vendor must conform to its target market. Any LOS vendor that claims it can sell to all sizes of mortgage companies clearly needs to spend another...

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