Re-engineering a Legacy LOS to Achieve a Single-Day Funding Record

Transforming Loan Origination Through Intelligent Automation

Client Organization

Our partner is a veteran in the small business funding arena, dedicated to offering swift, transparent, and user-friendly financing. With a 20-year track record, they understand that for a small business, time is the ultimate currency. They provide a mix of self-service digital convenience and the reassurance of expert advice, positioning themselves as a catalyst for their clients’ continued growth and expansion.

Project Brief

The challenge was clear: manual steps in the loan origination process were slowing down funding, creating inconsistencies, and reducing transparency for both customers and internal teams. We were brought in to completely overhaul the credit decisioning and offer generation process, shifting it toward a high-velocity, automated model. The goal was to accelerate funding while ensuring higher compliance and consistency.

Key Challenges That Had to Be Addressed

The manual gears of the legacy LOS were causing friction and speed bumps, which in the lending world, directly impact customer satisfaction and funding volume:

Offer Inconsistencies: Offer amounts, terms, and payment frequencies were often calculated manually, leading to variability and slower sales cycles.
High Manual Review Load: Too many ineligible applications were hitting the underwriting queue, diverting experienced staff from complex cases.
Black Box Underwriting: Underwriters lacked clear, system-provided reasoning for why an application needed manual review, slowing down their decision process.

Cumbersome Approvals: The process for approving offers, especially rollovers, was unnecessarily complex and slow, delaying capital access for clients.
Scalability Block: The process simply wasn’t built to handle the client’s targeted exponential growth without massive increases in staffing.

Solutions

We re-engineered the front-end of their lending engine with a suite of automation upgrades, transforming their loan origination system (LOS) into a high-speed digital factory. This move essentially allowed them to take the “brakes off” their sales and underwriting teams.

Automated Calculation Engine: Deployed logic to auto-generate the Maximum Offer Amount based on applicant data and proprietary risk models. This included system-driven Term Selection and tailored Payment Frequency.
Auto-Decline Logic: Implemented automatic declines for applications that clearly didn’t meet minimum eligibility criteria, drastically reducing the underwriting team’s manual workload.
Simplified Client Experience: Improved the Document Upload Menu and created smarter Rollover Offer Defaults for returning clients.

Enhanced Underwriting Visibility: The system now provides clear, automated reasoning for why an application was flagged for manual review, speeding up the underwriter’s decision-making.
Streamlined Offer Defaults & Approvals: Standardized offer defaults for consistent product offerings and introduced Role-Based Rate Approvals to simplify and speed up final offer sign-offs.

Benefits

The results were immediate and directly impacted the client’s bottom line and their capacity for growth, positioning them as a truly fast funding provider.

Accelerated Funding Cycle: Automation significantly reduced manual work, leading to much faster decision times and quicker capital disbursement to clients.
Improved Consistency and Compliance: System-driven calculations ensured every offer was consistent and compliant with internal risk policies.
Higher Underwriter Efficiency: By clearing out routine, ineligible applications, underwriters could focus on complex, high-value cases, maximizing their impact.

Enhanced Customer Transparency: Clearer, faster decisions and better visibility into the underwriting process created a more positive applicant experience.
Direct Impact on Records: The combined efficiency gains contributed to setting a new record for most units funded in a single day (16 units).

Tools, Technologies, and Integrations

Core Systems:	Loan Origination System (LOS)
Development/QA:	Direct involvement in system development and testing
Integration Points:	Internal Risk Models, Applicant Data Feeds
Key Enhancements:	Automated Decisioning Engines, Role-Based Access Controls

Turn Your Loan Origination System into a High-Speed Digital Engine with Sigma’s financial software development services

Re-engineering a Legacy LOS to Achieve a Single-Day Funding Record

Client Organization

Project Brief

Key Challenges That Had to Be Addressed

Solutions

Benefits

Tools, Technologies, and Integrations

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