
Why Do Some Loan Origination System Implementations Succeed While Others Fail?
Implementing a new loan origination system (LOS) is a significant investment for any mortgage lender. From software licensing fees to training staff and reworking processes, the costs and stakes are high. Yet, while some lenders find their new system unlocks efficiency, compliance, and profitability, others face stalled implementations or long-term struggles. What makes the difference? One key explanation lies in Gall’s Law.
Gall’s Law: A Simple Concept with Big Implications
Gall’s Law is a principle from John Gall’s book Systemantics: How Systems Work and Especially How They Fail. The law states:
“A complex system that works is invariably found to have evolved from a simple system that worked. A complex system designed from scratch never works and cannot be made to work.”
In other words, successful systems evolve over time, building on simpler foundations that have already proven effective. When this principle is ignored, efforts to design and implement a fully-featured, end-to-end complex system often fail because the foundation is too unstable to support the complexity.
How does this relate to LOS implementations? Let’s break it down.
The Pitfalls of Building Complexity Too Quickly
Many mortgage lenders embark on LOS projects with ambitious goals. They want the system to handle every workflow, integrate seamlessly with existing tools, and deliver game-changing efficiency. While this vision is understandable, trying to achieve it all at once can lead to failure. Here’s why:
- Overloading Initial Configuration: Some lenders attempt to implement every possible feature or workflow from day one. This “all or nothing” approach creates complexity that is difficult to test, understand, and troubleshoot. As a result, errors go unnoticed until they snowball, causing frustration for staff and delays in going live.
- Insufficient User Adaptation: A new LOS is a major change for the people who use it daily. When too many complex features are introduced at once, it can overwhelm staff and hinder their ability to adopt the system effectively. User resistance often follows, with employees reverting to manual processes or workarounds.
- Unrealistic Deadlines: Rushed timelines force teams to skip essential steps like thorough testing or phased rollouts. This often results in a system that technically “works” but lacks the stability, usability, or customization necessary for real-world operations.
I learned this lesson firsthand. When my partners and I set out to build the most sophisticated mortgage fraud prevention system ever, we made a critical mistake—we tackled the most complex part first. The result? Budget overruns, missed deadlines, and a product that impressed the industry but not our bank accounts.
Ironically, our second-tier system, FraudGuard, turned out to be the real success story. Unlike our initial approach, FraudGuard started as a simple, functional system that generated revenue. Over time, it became the foundation for the sophisticated fraud detection tools used today.
If we had started with FraudGuard, I have no doubt we would have built a better system—on time, on budget, and possibly still under our control. This experience aligns with Gall’s Law, which states that complex systems evolve from simple, working ones. Lenders would do well to keep this principle in mind when implementing a new LOS.
The Gall’s Law Approach: Build on What Works
To apply Gall’s Law, focus on building a simple, functional foundation before layering on complexity. Here’s how this approach leads to more successful implementations:
1. Start Small and Scale Up
Begin with the core functionality that your team needs most. For example, focus first on originating and processing standard loan types. Once the foundational workflows are running smoothly, introduce more advanced features like custom reporting, integrations, or automation. This iterative approach allows you to identify and fix issues early, without derailing the entire implementation.
2. Prioritize User Adoption
No matter how powerful the system is, its success depends on how well your team uses it. Prioritize training and user engagement early in the process. This means:
- Involving End Users in Decision-Making: Get input from loan officers, processors, and other staff who will rely on the system. Their feedback can help identify potential pain points and ensure the configuration meets their needs.
- Phased Training: Instead of overwhelming staff with every feature at once, train them in stages. Start with essential tasks, then build on their expertise as new functionality is introduced.
3. Test and Optimize
Testing is critical to ensure the system works as intended. Use a phased rollout to introduce the system to smaller teams or branches first. This “pilot” phase allows you to gather feedback, identify issues, and make improvements before a full-scale launch.
Real-World Example: The Difference Between Success and Failure
Consider two lenders implementing the same LOS:
Lender A: The “Big Bang” Approach
Lender A’s leadership team wants the LOS to handle every type of loan, workflow, and integration from day one. They push for an aggressive go-live date, leaving little time for testing or training. When the system is launched, users encounter bugs, workflows don’t align with their processes, and the team struggles to adapt. Frustrated employees resort to manual workarounds, and the LOS becomes a costly failure.
Lender B: The “Iterative” Approach
Lender B takes a phased approach. They start by configuring the LOS for their most common loan types, with minimal customizations. They involve end users in testing, gather feedback, and provide targeted training. Once the system is live and stable, they gradually add more features and integrations. By building on a solid foundation, Lender B’s team feels confident and empowered, leading to long-term success.
Why Training Is Key to Success
Training plays a crucial role in making the iterative approach work. Even the best-designed LOS will fail if users don’t know how to use it effectively. Here’s how tailored training supports successful implementations:
- Improved Confidence: Training helps staff feel confident and capable, reducing resistance to change. When employees understand how the system makes their jobs easier, they’re more likely to embrace it.
- Fewer Errors: Proper training reduces errors caused by misunderstandings or misuse of the system. This leads to smoother operations and fewer headaches for everyone involved.
- Stronger Feedback Loops: When users are well-trained, they can provide more insightful feedback during the testing and optimization phases. This helps fine-tune the system for maximum effectiveness.
How We Can Help
At Cyberlink Software Solutions, we specialize in helping mortgage lenders implement the MeridianLink Mortgage LOS system successfully. Our training programs are designed to:
- Simplify complex concepts for users of all technical skill levels.
- Focus on the most critical workflows and features first.
- Provide ongoing support as your team adopts and expands the system.
By following the principles of Gall’s Law and prioritizing user adoption, we’ve helped countless lenders avoid the pitfalls of overly complex implementations.
Conclusion
The difference between a successful LOS implementation and a failed one often comes down to how complexity is managed. Gall’s Law teaches us that starting simple and building on what works is the key to long-term success. By prioritizing user adoption, testing thoroughly, and taking an iterative approach, lenders can achieve their goals without overwhelming their teams or systems.

Why Some Lenders Regret Their Loan Origination System Choice After Just a Year or Two—and How to Avoid Their Mistakes
Switching to a new loan origination system (LOS) is a major investment. Lenders often hope a new system will bring improved efficiency, streamlined workflows, and better overall performance. However, one or two years after implementation, some lenders find themselves frustrated with their decision. Why?
After completing nearly 200 LOS projects including optimization and restart projects one to two years after the original implementation date, we think we have some answers. Here are our three most common reasons for dissatisfaction—and how you can avoid them when planning your next LOS implementation.
1. Trying to Make the New System Work Like the Old One
It’s tempting to replicate the familiar. Many lenders fall into the trap of trying to force their new LOS to mimic the workflows, screens, and processes of their old system. While this approach may feel like a shortcut to getting users comfortable, it often leads to inefficiencies and lost opportunities.
Why? New systems are designed to offer improvements—better integrations, faster processes, and more flexibility. Forcing the new LOS into the mold of your old one can prevent you from leveraging these benefits. It’s like buying a state-of-the-art smartphone and only using it to make calls because that’s what your old phone did.
How to avoid this mistake:
– Take the time to understand what your new LOS can do.
– Be open to reimagining your workflows to align with the system’s strengths.
– Encourage your team to embrace change by highlighting how new features can make their jobs easier.
– Remember why you are leaving your old LOS. Why would you want the new LOS to be the same as the old LOS?
2. Rushing Through Implementation Without Proper User Testing
Pressure to meet deadlines often leads to rushed implementations. While it might seem faster to skip thorough user testing, this approach almost always backfires. A system that hasn’t been tested under real-world conditions can leave your team facing unexpected glitches and frustrations after go-live.
Without proper testing, even small configuration issues can snowball into bigger problems. Users may struggle to adapt, and productivity can take a hit, souring opinions of the new LOS from the start.
How to avoid this mistake:
– Build a realistic implementation timeline that includes time for user testing.
– Involve end-users early and often. Let them “test drive” the system in realistic scenarios to identify issues before they become roadblocks.
– Treat testing as an investment—it’s cheaper to fix problems during implementation than after the system goes live.
3. Not Fully Understanding the System’s Capabilities
Modern LOS platforms are packed with features, but lenders sometimes fail to take full advantage of them. Without a clear understanding of the system’s capabilities, workflows may default to inefficient setups or underutilize automation tools that could save time and reduce errors.
In many cases, this lack of understanding stems from insufficient training. End-users might only receive basic instructions on how to complete their immediate tasks, leaving advanced features unexplored.
How to avoid this mistake:
– Prioritize comprehensive training for your team, including in-depth sessions on advanced tools and workflows.
– Work closely with your LOS vendor or consultant to fully map out the system’s capabilities and how they align with your business needs.
– Schedule periodic reviews after go-live to identify underutilized features and explore additional efficiencies. We always recommend post-go live training to build on the new real-world use of your new LOS.
Planning for Success
Regret over a new LOS isn’t inevitable. By approaching implementation with a clear plan, you can maximize the value of your investment and ensure your team is equipped to succeed.
– Be adaptable: Let your new system guide you toward better workflows rather than clinging to old habits.
– Take your time: Thoughtful implementation, including robust user testing, is essential.
– Invest in knowledge: A deeper understanding of the system’s capabilities will unlock its full potential. And don’t skip over training, Cyberlink’s trainers get to see firsthand the value they bring to the end goal of a smooth transition from old to new LOS.
When you avoid these common pitfalls, your new LOS won’t just meet expectations—it will exceed them, helping your team work smarter and serve borrowers more effectively for years to come.
Cyberlink Software Solutions, Inc. – Consulting Partners specializes exclusively in MeridianLink Mortgage, bringing the experience of nearly 200 projects and deep industry expertise to optimize your loan origination system. From streamlined workflows to unique configurations, we’ve seen it all—and we’re here to help you find the best approach for your business. If you’re ready to unlock the full potential of your MeridianLink Mortgage system, let’s connect.
Visit www.oncyberlink.com or schedule a free project consultation meeting with one of our MeridianLink Mortgage specialist.

Comprehensive, High-Volume Reports with MeridianLink Mortgage
In our last article, we explored unlocking efficiency with the MeridianLink Mortgage Custom Report Generator, highlighting its flexibility in creating real-time pipeline reports and workflow queues to zero in on the loans needing attention. This tool is excellent for generating quick, actionable insights. However, it does have limitations: it’s restricted in the number of fields, lacks advanced math functions, and can’t translate data into custom values—a common need for lenders who work with multiple vendors and specialized data formats.
Today, let’s dive into the capabilities of the MeridianLink Mortgage Batch Export Report Generator. This tool is the go-to choice for creating comprehensive, high-volume reports tailored to the unique needs of both lenders and their vendors. With its advanced data handling, the Batch Export Generator is ideal for producing complex reports that require customized data translations, extensive field inclusion, and calculations that the Custom Report Generator simply can’t support.
Here’s why lenders find the Batch Export Generator indispensable for generating detailed reports:
Why Use the Batch Export Report Generator Over the Custom Report Generator?
– Greater Field Capacity: While the Custom Report Generator is capped in the number of data fields, the Batch Export Generator allows for a significantly higher field count, making it ideal for comprehensive reports.
– Data Translation Flexibility: This tool can translate data into custom values for more precise data reporting. For instance, if owner occupancy needs to be represented as “1” for “Yes” and “2” for “No,” the Batch Export Generator can easily accommodate that.
– Advanced Calculations: Need complex calculations embedded within the report? The Batch Export Generator supports more advanced math operations, enabling nuanced and precise data analysis.
– Seamless Vendor Integration: Many lenders use this tool to meet specific vendor requirements, delivering data in precisely the format needed for partners like servicing, quality control, compliance, and hedging firms.
– Improved Efficiency in Bulk Reporting: The Batch Export Generator is designed for high-volume data handling, streamlining the process for reports that involve hundreds of fields or extensive data sets.
With Cyberlink Software Solutions’ expertise, we’ve built tailored Batch Export reports to meet lenders’ unique needs, including:
– Onboarding new loans for servicing partners
– Supplying detailed loan data to QC companies or compliance vendors
– Providing loan data to hedging firms
– Preparing loan fees with investor pricing for accounting integration
If your business requires extensive, customized reports, the Batch Export Report Generator is the right solution. Contact us to learn how our consulting team can design efficient, high-capacity reports that save time and enhance your workflow.
Cyberlink Software Solutions, Inc. – Consulting Partners specializes exclusively in MeridianLink Mortgage, bringing the experience of nearly 200 projects and deep industry expertise to optimize your loan origination system. From streamlined workflows to unique configurations, we’ve seen it all—and we’re here to help you find the best approach for your business. If you’re ready to unlock the full potential of your MeridianLink Mortgage system, let’s connect. Visit www.oncyberlink.com or call 818-917-2265 to speak with a MeridianLink specialist.

Unlocking Efficiency with the MeridianLink Mortgage Custom Report Generator for Pipeline Management and Workflow Queues
The home lending process is all about precision and timeliness. Every stage in a loan’s life cycle requires accurate, up-to-date information to ensure that clients are well-served and compliant with industry standards. That’s why a tool like the MeridianLink Mortgage Custom Report Generator is invaluable for lenders. By creating detailed pipeline reports and workflow queues, this tool provides real-time data with ease, helping you track loans, prioritize loans and monitor performance. Here, we’ll discuss how you can benefit from creating reports with advanced filters and logic for the most current and refined loan data.
1. The Power of Real-Time Data
Mortgage lending professionals know that yesterday’s data might already be outdated. Real-time data is crucial for staying on top of your pipeline, meeting deadlines, and ensuring smooth processing. The MeridianLink Mortgage Custom Report Generator makes it easy to pull data instantly, allowing you to generate loan summaries, track stages, and monitor key metrics as they change.
Real-time reporting helps you:
– Track loan progression from submission through closing.
– Quickly identify where loans might be getting delayed.
– Act immediately on updated information to meet client expectations.
2. Extensive Filtering Options for Precise Reporting
One of the key strengths of the MeridianLink Mortgage Custom Report Generator is its extensive filtering system, allowing you to customize reports to meet specific needs. You can narrow down results by:
– Loan status or stage, e.g., pre-approval, underwriting, or closing.
– Assigned loan officer, processor, or other team members.
– Date ranges, including loan origination or expected closing date.
Using filters effectively means spending less time sifting through irrelevant data and more time focusing on what matters most. For instance, setting up a custom filter to view loans within a certain funding stage can quickly give you a picture of which loans need immediate attention.
3. Flexible Logic to Create Targeted Reports
With advanced logic options, users can go beyond simple filtering to refine their searches and get the most relevant insights. This feature allows you to define specific conditions that a loan must meet to be included in the report. By setting conditions based on loan characteristics, like credit score ranges or property types, you can create highly targeted reports that align with your specific lending objectives.
A few ways logic can enhance your reports:
– Creating workflow queues for specialized loan products.
– Organizing loans by complex criteria to aid team members in prioritizing.
– Generating segmented reports for different loan types.
4. Efficient Workflow Queue Creation
When you can rely on real-time data and robust filters, you can set up workflow queues that streamline everyday processes. With customizable pipeline views and workflow tracking, team members can quickly see which tasks require their attention.
5. Improved Communication and Decision-Making
With shared reports and transparent workflows, everyone from loan officers to post closers can access the same real-time data. It not only improves internal communication but also gives team members the information they need to keep clients informed.
6. Maximizing the Potential of Custom Reporting
Finally, using the MeridianLink Mortgage Custom Report Generator allows you to continually refine your processes. You can adapt and update reporting parameters as your team’s needs evolve, ensuring that you’re always making data-driven decisions with the most current loan insights.
Conclusion
The MeridianLink Mortgage Custom Report Generator is a powerful ally for mortgage professionals seeking accuracy, efficiency, and responsiveness in their daily workflows. By leveraging its real-time data, extensive filters, and flexible logic, you can take control of your loan pipeline with ease, ensuring that every stage of the process flows smoothly. Whether you’re creating pipeline reports, setting up workflow queues, or tracking loan progress, this tool empowers you to make the best decisions based on reliable data.
Cyberlink Software Solutions, Inc. – Consulting Partners specializes exclusively in MeridianLink Mortgage, bringing the experience of nearly 200 projects and deep industry expertise to optimize your loan origination system. From streamlined workflows to unique configurations, we’ve seen it all—and we’re here to help you find the best approach for your business. If you’re ready to unlock the full potential of your MeridianLink Mortgage system, let’s connect. Visit www.oncyberlink.com or call 818-917-2265 to speak with a MeridianLink specialist.

The Big Mortgage CRM Interview
Retail mortgage CRM solutions often fall short of meeting the unique needs of loan officers. In this interview, discover actionable strategies and learn how a retail mortgage-specific CRM, when properly set up and used according to a few key principles, can transform the way any loan officer works, regardless of their experience level. Learn more about mortgage CRMs from Eric Gemme, BNTouch Mortgage CRM and Greg Uttal, Cyberlink Software Solutions. We will discuss strategies that work with integrations to your favorite LOS: Encompass, MeridianLink Mortgage, Byte, Arive, LendingPad and many more !

Lending Leaders Podcast – The Tech That Matters Most
Had a great time talking with Jim Paolino at LodeStar about our family mortgage business, mortgage automation and my love of change. Even when the change is 30 years in the making.
There was so much to unpack in this one-minute question and answer. The conversation left me wanting to dig deeper into the topic. It was a good reminder of the importance of committing to change.
Change isn’t just a decision; it’s a cascade of consequences and opportunities. Like the ripples from a stone tossed into a pond, the effects of our choices to change (or delay it) spread out, not just influencing the way we operate today but the broader ecosystem we’re a part of.
And speaking of opening discussions, hats off to Jim Paolino. He has this unique ability to not just open doors but to make you want to walk through them and stay engaged in the conversation.
Let’s keep the conversation going. Join us on LinkedIn to share your thoughts on making a commitment to change and understanding its far-reaching impacts? Check out Jim’s podcast: