The Smaller and Mid-Market Lender’s Secret Weapon

The Davids are beating the Goliaths at their own game. Here’s how.

Think you have to be large to be a powerhouse? It’s just not so. One only needs to consider this year’s Olympics for proof that winners come in all sizes. The U.S. Women’s Gymnastics team produced stellar performances from persons who look like they might be challenged by the height requirement at Space Mountain. Still, they dominated the competition and inspired millions during the course of the games.

In our industry, smaller lenders have long had an edge on their largest competitors, though it is not always recognized. They have the ability to offer personalized service in a complex transaction that most identify as among the most intimidating of all financial dealings. Getting a mortgage is a huge step, particularly when the borrower is new to the process, but smaller lenders can make it a whole lot easier. Their secret weapon? The loan origination software system, the LOS.

In years past, the larger, more technology-capable institutions had a tremendous advantage when it came to automating the mortgage process. They invested in what was known as “big iron,” the large systems that were often built by technologists in the lender’s own IT department, often with the help of tech giants like IBM and EDS. These systems were state of the art and tailor-made for the big lender’s business model, and impossible to replicate for all but their largest competitors. As a result, large lenders could reduce their costs per loan and compress transaction times with their superior technology.

They were good in their time. But today the scales have tipped in favor of the smaller lenders, because they can offer their signature one-on-one service and technology that meets (and often exceeds) the capabilities of the largest banks. How did this happen? Cloud-based delivery and the nature of the distributed market created the conditions that allowed PCLender to innovate rings around the “big iron” concept people, opening the door for smaller lenders to ascend to market share heights not seen in years.

With PCLender’s approach, lenders pay per loan for features that once cost the mega-banks hundreds of millions of dollars to build. While the huge institutions are bogged down in bureaucracy, procedures and analysis paralysis, we are free to listen to our customers to understand their needs in real time. As a result, our customers, the smaller and mid-market lenders, enjoy unparalleled return on investment, both because the investment is low and the value is great, like an ROI perfect storm. Even though PCLender clients don’t have to pay for a tailor-made LOS solution, they still get top-line features, including:

  • Built-in best practices, configurable to every lender’s preferences
  • Single database of record, mapping each field to the right document and correct calculation
  • Intuitive user interface that understands real-world lender processes and workflows
  • A completely integrated system that brings all lender departments and functions together
  • Built-in compliance throughout the loan process and audit-ready reporting
    Constant upgrades and maintenance by PCLender, minimizing the lender’s IT burden

We’re proud to partner with lenders of all sizes across the country, providing world-class technology that enables smaller lenders to compete effectively with the largest companies. Virtually everything is better with competition, and PCLender works incredibly hard every day to be the smaller lender’s secret weapon—which is why so many of our clients are able to “bring home the gold.”