What is Loan Origination System (LOS)?
Software used by lenders to manage the end-to-end loan process from application through closing and booking.
Loan Origination System (LOS) in commercial lending practice
A commercial LOS typically handles workflow management, document tracking, compliance checks, and integration with core banking systems. Major commercial LOS platforms include nCino, Abrigo, Baker Hill, MeridianLink, and Encompass. A legacy LOS is a system of record: it holds status, documents and final numbers, and the bank keys everything into it. Aloan is the AI-native commercial LOS, a system of action: it collects the documents, spreads the financials, runs global cash flow, checks the file against policy and drafts the credit memo, with your team reviewing and deciding. Run Aloan as your commercial LOS, or alongside the one you already have. Booking to the core stays with the core, and closing documents and pipeline reporting are on the roadmap.
Variations by loan type
How Loan Origination System (LOS) differs across CRE, C&I, and SBA
nCino
Salesforce-based commercial lending platform widely deployed at mid-size and large community banks. Strong workflow, pipeline management, and core integration. Run alongside nCino, Aloan does the spreading, global cash flow, and credit memo work on the documents the bank collects while nCino stays the record of the booked loan. Aloan can integrate with the bank's existing stack, nCino included, through its REST API and webhooks.
Abrigo (Sageworks)
Common at community banks and credit unions. Includes an integrated loan administration and credit analysis module. Run alongside Abrigo, Aloan handles multi-document spreading and global cash flow while Abrigo stays the record of the booked loan.
Baker Hill NextGen
Lifecycle commercial lending platform used by community banks. Strong workflow and policy-engine capabilities. Run alongside it, Aloan produces the spread, the global cash flow, and a source-cited draft memo the credit team carries into the Baker Hill workflow.
MeridianLink, Encompass, custom
Many banks run mixed environments, including legacy in-house LOS and consumer-led platforms (Encompass) extended into commercial. Aloan runs alongside any of them, or as the commercial LOS where the commercial book has no system of its own. Aloan can integrate with any of them through its REST API and webhooks.
Further reading
Go deeper on Loan Origination System (LOS)
Frequently asked
Loan Origination System (LOS) FAQ
Do I need to replace my LOS to add AI underwriting?
No. Run Aloan as your commercial LOS, or alongside the one you already have. Alongside an incumbent, documents come in through Aloan, it runs spreading, global cash flow, and credit memo generation, and the finished analysis comes back to the credit team while the incumbent LOS keeps pipeline reporting, booking, and core integration. A lender with nothing to keep runs Aloan as its commercial LOS from the first loan; approval routing is single-approver today, and closing documents and pipeline reporting are on the roadmap.
What is the difference between an LOS and a credit decisioning engine?
An LOS manages workflow, document tracking, compliance, and integration with the core. A credit decisioning engine runs the analysis and policy logic that produces a recommendation. Most commercial LOS platforms include a lightweight decisioning capability, but the heavy lifting (spreading, global cash flow, memo drafting) typically happens in specialized analysis tools, or in an AI-native commercial LOS such as Aloan that does that work inside the system.
Can AI underwriting integrate with my LOS via API?
Yes. Aloan can integrate with your existing stack, including the LOS, through its REST API and webhooks, scoped to what the bank wants exchanged. No integration is required to start: many banks run Aloan alongside the LOS first and connect the two later.
What does it mean to work with an existing LOS without replacing it?
It means the software works with the bank's existing LOS instead of forcing a rip-and-replace project. The bank keeps its workflow, approvals, document repository, and core integration, while Aloan does the document, spreading, and memo work faster, more consistently, and with source-cited outputs. A legacy LOS is a system of record; Aloan is a system of action.
Related terms
Related concepts in commercial underwriting
Credit Memo
A formal written analysis prepared by a loan officer or credit analyst that summarizes a borrower's creditworthiness, the proposed loan structure, risk factors, mitigants, and a recommendation to approve or decline.
Read definitionFinancial Spreading
The process of extracting financial data from tax returns, financial statements, and other documents and organizing it into a standardized format for credit analysis.
Read definitionGlobal Cash Flow Analysis
An underwriting approach that consolidates the cash flows of all related entities and guarantors — not just the borrowing entity — to assess total repayment capacity.
Read definitionLending Workflow Automation
Software that automates discrete stages of the commercial lending lifecycle — intake, financial spreading, underwriting analysis, credit memo drafting, and post-close monitoring.
Read definitionSee it in Aloan
How Loan Origination System (LOS) shows up in AI underwriting
Aloan automates the underwriting analysis where loan origination system (los) matters — spreading, global cash flow, credit memo generation — with source-cited audit trails on every figure. See it run on a real deal in your standardized format.
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