Choosing the Right Loan Accounting Platform: 4 Issues to Consider

With billions of dollars transacted daily, loan accounting is crucial. A disciplined process can ensure correct amounts are remitted, generate accurate journal entries and efficiently deliver investor reporting. But this process can be cumbersome and difficult to manage. Moreover, homegrown systems-of-record are often not scalable, and prone to errors. Institutions need a system flexible enough to handle a wide array of residential and consumer assets, and robust enough manage all of the complex accounting needs of a loan portfolio.  

SitusAMC’s new guide, “4 Considerations When Investing In A Loan Accounting Platform” discusses key issues to bear in mind when investing in a system of record for loan accounting. The guide explores why institutions should choose a unified platform with broad asset-class flexibility and deep portfolio accounting capabilities, backed up by a team of focused experts. The guide outlines the must-haves for a loan accounting system, including the ability to: 

• manage many types of loans, including residential mortgages, unsecured personal loans, home equity lines of credit (HELOCs), auto loans, or residential transition loans (RTL) for fix and flip ventures – saving money and accommodating future business expansion or diversification; 

• calculate cash from sub-servicers to validate and reconcile servicer remittance on a daily and monthly basis to generate independent reporting; and have configurable tools and methods to detect discrepancies; 

• manage complex accounting needs, including the ability to clearly distinguish between loan and servicing rights; establish bespoke amortization rules for yield management and accrual policies at pool and loan level; and offer a range of sophisticated tools and features to support deeper analysis and reporting;  

• incorporate expert team support with real-world experience in deploying, configuring, and support the application. 

The right loan accounting platform can help improve servicer oversight, maximize profit and efficiency and enhance the integrity of accounting processes. Download our guide, “4 Considerations When Investing In A Loan Accounting Platform” here. For more information on SitusAMC’s loan accounting and master servicing platform, visit our website.