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.
