Okay, so you want to know how Loanscape handles the intake process. Let’s start by defining what the "intake process" actually is.
The intake process refers to how you receive applications in your wholesale, correspondent, and warehouse channels.
Historically, investors have used one of two methods:
1. Manual PDF
The manual PDF has been the "cheap" or cost-effective way to manage this part of the process. Not only is it inexpensive, but it’s also foolproof, and it doesn’t require the originator to learn a new system or user interface to start the application.
2. Comergence
Comergence has been the industry’s default software platform for handling applications. It has been around for over a decade, and originators are familiar with its platform.
While these two methods have worked historically, we believe there’s a lot of room to improve the process and add value for both the originator and the investor.
Cost to Apply
With manual PDFs, there’s typically no cost to apply since it’s just a PDF you download and fill out. With Comergence, either the originator or the investor pays a fee for an "invite".
With Loanscape, we wanted to bring the simplicity of manual PDFs to a software platform, so we don’t charge either the originator or the investor a fee for submitting an application.
User Interface
There’s no denying that a PDF is straightforward and doesn’t require a learning curve.
In contrast, most software involves some learning to understand where all the functions and buttons are. The benefit of Comergence is that it has been around for over a decade, and originators are familiar with its user interface.
With Loanscape, we bring a modern user interface to the industry, making the platform incredibly easy to use. The reality is that even with our highly intuitive UI, some originators inevitably need support.
At Loanscape, we don’t place this burden on the investor; instead, we handle all aspects of support. Our thought process is that we built the platform, so we know how to support our users effectively and in a timely manner.
Data Entry
With manual PDFs, there’s a significant amount of data entry that the investor has to manage. Typically, the data from the PDF is parsed into spreadsheets, CRMs, and other downstream systems. This work requires manual entry, often handled by onshore or offshore staff.
With Comergence, while the data is captured digitally, there is still a significant amount of manual data entry by onshore or offshore teams to parse the data into other systems. Comergence does offer an API, but for some investors, it can be cost-prohibitive.
With Loanscape, investors can leverage our API at no additional cost to trigger workflows in CRMs and other systems, ultimately eliminating manual data entry and reducing the cost of doing business. This also improves the client experience.
Conclusion
Historically, the manual PDF process has been seen as the more cost-effective approach to managing this workflow. However, with Loanscape, this assumption should be reconsidered.
While Comergence has been the default software platform in the space, our vision for the future of counterparty risk management is quite different.
Ultimately, as an investor, you need to evaluate your entire process and choose a vendor aligned with your long-term success.
