Velocity and Filogix are both Mortgage Origination Systems (MOS). This means they help you, as a mortgage broker, submit your deal to a lender for approval and funding.
While these two systems are similar in their primary function of submitting deals to a network of lenders, they do have significant differences. Specifically, they differ in lender access, add-on services and connectivity.
Filogix is the oldest Mortgage Origination System in Canada. For many years, it was the only option to submit your deals to the lender. They are still the largest MOS in Canada by funded volume. Because of their history, many resources, training materials, and processes in the Canadian Mortgage industry are based on their tech.
Velocity is the second oldest Mortgage Origination System in Canada, formed by the acquisition of multiple tech platforms by its parent company, Newton. They are the second largest MOS in Canada by funded volume. Velocity can be credited for disrupting the monopoly that Filogix had over the Canadian Mortgage industry. Velocity and Newton are currently owned by the DLC group of companies.
Velocity and Filogix are both MOS. This means they both allow brokers to submit deals to lenders and receive approval/funded replies from the lender.
Velocity and Filogix both have access to all the major lenders in Canada that use the broker channel such as Scotiabank and TD Canada Trust.
Velocity and Filogix both allow you to generate MPP applications through their platforms for compliance purposes. They also both have mortgage tools such as affordability calculators, GDS/TDS, and payment schedules to assist in your underwriting.
Finally, Velocity and Filogix both support an API. This means that external systems can connect with their data.
However, there are some differences between the two:
While both MOS connect with all major lenders, there is a long tail of smaller lenders in Canada, and Velocity/Filogix each supports a different mix of these smaller lenders. Make sure you understand if Velocity or Filogix supports the smaller lenders that you use the most.
Velocity has invested heavily in add-on services, beyond the ones discussed above. This includes connection to NOA, an online application, e-sign, and more (some of which are paid). Filogix has some of these features but is only accessible through their Pro subscription.
Velocity supports a webhook-based integration along with their API. This means that updates to external systems can be instant, as opposed to on-demand, or on a daily sync. Filogix’s API has more data points than Velocity. This means that the system can send more data to external systems.
When deciding between Filogix and Velocity, they both have their pros and cons, so it depends on your specific situation on what you believe is best.
Here at BluMortgage, we believe that the most important aspect of a Mortgage Origination System is access to lenders, so we recommend weighing this factor most heavily.
BluMortgage connects with both Filogix and Velocity, so whatever you pick, we can help you with all other services such as deal flow tracking, stay-in-touch campaigns, e-sign, and much more!
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