Some financial organizations might not understand how critical it is to their bottom line, and their relationship with customers, to have comprehensive and up-to-date loan management software. Without the right tools to find creditworthy borrowers, and work with them to find a mutually beneficial payment plan, banks could have an unsure future.
This blog has previously discussed the federal government shutdown, and how the longer it continues, the more devastating it will be to the U.S. housing market. This is a perfect example of why financial institutions need as much information as possible, because when adverse events happen, making a sound financial decision can be more difficult.
According to the Los Angeles Times, some banks are getting information on potential borrowers from other sources, since there are partial closures at the Internal Revenue Service and other industries. Even so, a few organizations are simply taking the risk with clients and creating loans for them without all of the data that they normally gather.
Regardless, the shutdown is seriously hindering some loans from taking place. For example, home loans in rural areas have hit a roadblock, because they are guaranteed by the U.S. Department of Agriculture.
Debra Still, chief executive of Pulte Mortgage and head of the Mortgage Bankers Association, is not happy with the current situation.
“How much momentum are our fragile housing markets going to lose?” she asked the news source. “The longer we’re shut down, the more it’ll negatively affect housing.”
While no one can predict something like a government shutdown, measures can be taken to keep loans as stable as possible. The right lender software will help banks find borrowers with strong financial standing who will remain timely on their payments.