Managing loans efficiently requires a structured approach. Without a well-organized system, loan servicing can become a tangled mess of approvals, verifications and follow-ups. That’s where workflow management comes in.
Nortridge Loan System makes it easy for loan servicers to streamline loan processes by automating tasks and ensuring nothing falls through the cracks. In this article, we’ll explore how a loan workflow can improve efficiency, reduces manual work and keeps loan servicing operations running smoothly. We’ll also break down how Nortridge’s workflows function and how they can be customized to fit different lending needs.
What is Workflow Management And How Does it Enhance Loan Servicing?
Workflow management in lending guides each task through a structured loan process, ensuring that actions are completed in the correct order and assigned to the right people. Nortridge allows a loan servicer to customize workflows based on their specific needs, helping them improve efficiency and accuracy.
Automates Loan Processing
Workflows handle both front-end and back-end loan processes, reducing manual intervention and minimizing human error. Through automating key tasks such as application verification, underwriting and loan disbursement, you can speed up approvals and maintain consistency.
Ensures Consistency
Each workflow follows predefined rules to keep loan servicing compliant with internal policies and external regulations.Workflows also maintain a detailed audit trail, ensuring transparency and accountability in every loan process.
Increases Operational Efficienc
Automating approvals, task assignments and tracking progress assists workflows in eliminating bottlenecks that slow down lending operations. Nortridge’s system ensures tasks move seamlessly between departments, preventing delays and miscommunications.
The 4 Key Workflows in The Nortridge Loan System
Nortridge Loan System provides a configurable workflow engine that helps loan servicers manage various aspects of the lending process.
1. Loan Origination Workflow
A well-structured loan origination workflow ensures that applications move seamlessly from submission to funding. With Nortridge, you can configure workflows to automate verifications, approvals and funding decisions.
Automatically verify key details
Use a structured checklist to confirm employment, income and bank information, reducing errors and ensuring accuracy. Automated verification speeds up loan approvals, helping you process applications more efficiently without missing critical borrower details.
Reduce processing time by routing tasks efficiently
Automate task assignments so applications move to the right departments without delays. Workflows ensure that underwriting, approvals and funding follow a structured path, keeping teams aligned and reducing the time it takes to finalize loans.
2. Loan Approval Process Workflow
The loan approval process workflow ensures that loans are assessed properly before they are approved. Nortridge workflows help loan servicers maintain consistency and accuracy throughout the approval process.
Assign tasks based on pre-set rules
Ensure loan approvals follow a structured process by automatically assigning tasks based on predefined rules. This keeps workflows organized, reduces manual intervention and ensures that applications move through the necessary steps without unnecessary delays or oversight issues.
Automate decision-making with integrated verifications
Streamline approvals by automatically verifying borrower income and creditworthiness. Workflows can pull real-time financial data, reducing manual review time and ensuring only qualified applicants move forward, minimizing errors and improving the accuracy of lending decisions.
Reduce delays with automated escalation
Prevent bottlenecks by escalating pending approvals to managers when necessary. If a task remains incomplete beyond a set timeframe, workflows automatically route it to the next level, ensuring timely decision-making and keeping loan processing on track.
3. Loan Servicing Workflow
A strong loan servicing workflow helps you stay on top of borrower payments and communications. Nortridge makes it easy to automate and track every step.
Schedule and automate payment processing
Streamline loan servicing by automating payment processing, late fee assessments and borrower reminders. This ensures on-time payments, reduces manual workload and minimizes missed payments by keeping borrowers informed through scheduled notifications and system-generated alerts.
Set up automated alerts for overdue accounts
Improve collection efficiency by configuring real-time alerts for overdue payments. Automated notifications prompt follow-ups, reduce delinquencies and help loan servicing teams address potential issues before they escalate into defaults or lengthy collection processes.
4. Commercial Lending Workflow
Nortridge provides a commercial lending workflow designed for business loans, helping loan servicers process applications more efficiently.
Customize workflows for different loan types
Build tailored workflows for various loan products, from short-term business loans to large-scale financing. This flexibility allows loan servicers to set up approval criteria, document requirements and servicing processes that align with each loan type’s specific needs.
Automate document collection and verification
Speed up approvals by integrating automated document collection and verification. Workflows ensure required borrower documents are submitted, reviewed and validated without manual follow-ups, reducing processing times and keeping applications moving forward without unnecessary delays.
Track loan status with real-time updates
Monitor loan progress with real-time workflow tracking and audit trails. Loan servicers can instantly see where a loan is in the approval process, ensuring accountability, reducing errors and keeping all stakeholders informed throughout the loan’s lifecycle.
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Configuring Workflows in Nortridge Loan System
Nortridge allows you to set up workflows that guide loans through every stage, ensuring accuracy and efficiency. Workflows are structured using Action Codes and Result Codes, which determine how tasks progress through the system.
Defining the 5 Action Codes in Nortridge
Action Codes represent key decision points within a workflow. Each action dictates what needs to happen next in the loan process, ensuring tasks follow a structured path.
1. Assign to Rep
The task is assigned to a designated loan officer or servicing team based on predefined workflow rules. This ensures the right person handles the request, improving accountability, preventing delays and keeping the loan approval or servicing process on track.
2. Work Ticket
The loan request is formally documented, categorized and tracked for processing. This step ensures all necessary information is recorded, allowing servicing teams to monitor the loan’s progress and maintain accurate records for auditing and reporting purposes.
3. Waiting for Customer Confirmation
The process pauses while waiting for the borrower to confirm loan terms, provide signatures or verify information. This step ensures that the borrower actively participates in the loan process, preventing unnecessary processing delays.
4. Waiting for Customer Info
The workflow remains on hold until the borrower submits required documents, such as proof of income, credit reports or identification. This prevents incomplete applications from moving forward while ensuring that loans are processed accurately.
5. Waiting on Development
If underwriting changes, system updates or custom processing rules are required, the task is escalated to the appropriate department. This ensures technical or structural adjustments are completed before the loan moves to the next stage in the workflow.
Defining the 14 Possible Result Codes in Nortridge
Result Codes determine what happens after an action is completed. They define possible outcomes and ensure that the workflow routes tasks to the right place based on the action taken.
1. Assign
The loan file is transferred to a new representative or department for handling. This ensures that tasks are directed to the appropriate team, maintaining workflow efficiency and ensuring each step in the loan process is completed by the right personnel.
2. Need Info From Customer
The workflow pauses because essential borrower details, such as financial documents, income verification or identification, are missing. This step prevents incomplete applications from moving forward and ensures all necessary information is gathered before the loan continues through the approval process.
3. Solution Given
The loan process advances after providing a solution, such as finalizing loan terms, updating borrower information. This step ensures the issue is resolved and moves the loan closer to approval, funding or successful servicing completion.
4. Waiting on Dev
The loan file is temporarily placed on hold for internal development work, such as underwriting adjustments. This step ensures that necessary modifications are made before the loan continues, preventing errors or regulatory violations in processing.
5. Resolved
The loan application, servicing request or issue has been successfully completed and can be closed. This indicates that all required actions have been taken and no further work is needed for the file.
6. Closed Per Customer
The borrower has requested loan closure or confirmed that no further action is needed. This result finalizes the loan process based on borrower input, ensuring that all necessary verifications and approvals have been completed before closing the file.
7. Closed Per Software Vendor
The request has been completed and all software-related actions, such as system updates, have been finalized. This ensures the workflow is properly concluded with all technical requirements met before moving to closure.
8. Cancel
The loan application or servicing request is canceled due to borrower withdrawal, failure to meet eligibility criteria or system issues. This ensures that unqualified or unnecessary loan requests are stopped before further processing occurs.
9. Received
A required document, such as borrower identification, income verification or a signed loan agreement, has been successfully received. This result moves the loan process forward, ensuring that all required paperwork is properly submitted before the next step.
10. Not Received
A required document or verification has not been provided, triggering a follow-up action. This prevents loans from progressing without necessary documentation, ensuring accuracy before moving forward in the approval or servicing process.
11. Solution Failed
The proposed resolution did not successfully address the issue, requiring additional adjustments or a new review cycle. This step ensures that problems are re-evaluated and corrected before the loan can continue processing.
12. Customer Confirmed
The borrower has acknowledged the loan terms, confirmed acceptance of a resolution or verified loan-related changes. This step ensures that the loan remains compliant and that the borrower is actively involved in key decision-making.
13. No Customer Response
The borrower has not responded within the required timeframe, triggering a follow-up or escalation process. This ensures that outstanding actions are addressed before proceeding with further loan processing steps.
14. Software Vendor Confirmed
A third-party software vendor has confirmed a required action, such as system integration completion or technical updates. This ensures the workflow accounts for necessary external approvals before continuing.
Routing Tasks and Automating Processes in Nortridge
Once Action and Result Codes are configured, Nortridge determines how tasks progress through the system using predefined routing rules.
Configure workflows to trigger next steps automatically
Completed actions prompt the system to move tasks to the next step without manual intervention. This automation eliminates processing delays, ensures seamless loan progression and reduces the risk of human error in approvals, verifications and servicing workflows.
Set up notifications and alerts to prevent missed steps
Automated alerts notify teams of pending approvals or missing documents. These reminders help prevent bottlenecks, ensuring that critical loan processing steps are completed on time and keeping the workflow running efficiently.
Use scripting to automate repetitive tasks
Reduce manual work by scripting routine actions, such as updating loan statuses, sending borrower notifications or closing completed workflows. Automation improves accuracy, speeds up processing and allows loan servicing teams to focus on higher-value tasks instead of repetitive administrative work.
Why Nortridge’s Workflow Management Stands Out
Nortridge’s loan workflow automation is built to enhance efficiency, reduce errors and simplify loan servicing. You can create, customize and optimize workflows to match their business needs.
Flexible Customization
Configure workflows to match different loan products, business rules and regulatory requirements. Nortridge allows you to tailor each step, from origination to servicing, ensuring the system adapts to their unique processes. Customizable workflows improve efficiency while maintaining structured decision-making for various lending scenarios.
Built-In Auditing Features
Maintain full audit trails through automated tracking. Every action, approval and modification is logged, creating a transparent record for internal reviews and audits. This is th way to reduce risk and ensure adherence to industry regulations without additional manual oversight.
Improved Efficiency
Automating loan workflows reduces manual work, minimizes errors and keeps tasks moving seamlessly. This is how you can improve response times, streamline operations and enhance overall productivity. With fewer delays, teams can process more loans accurately and efficiently.
Take Control of Your Lending Workflow with Nortridge
Nortridge Loan System’s advanced workflow engine helps loan servicers optimize their loan management process. Whether you need a structured loan origination workflow or a robust loan servicing workflow, Nortridge provides the flexibility and automation to keep your operations running smoothly.
Ready to see how Nortridge can streamline your loan workflows? Contact us today for a demo and discover how workflow automation can transform your lending operations.
