How to Get User Buy-In for a New LOS

How to Get User Buy-In for a New LOS

We’ve talked a lot in our thought leadership about how to pull off a successful LOS implementation. But before you can begin tackling that project, you first need to convince key stakeholders that there is a clear and demonstrable need for a new loan origination system.

You might already be certain that you need a new LOS, but securing organization-wide confidence in adopting a new system can be challenging. Here’s our best advice on how to get user buy-in for a new LOS.

Define Pain Points for Key Stakeholders

Saxony Partners Senior Manager Harry Hixson has years of hands-on experience specifically with LOS implementations. He serves as an advisor for our clients in LOS vendor selection and ensures their implementation projects go smoothly.

The first step to encouraging a new LOS adoption, Hixson said, is to identify the core issues and pain points stakeholders are facing with the current system.

“You need to clearly define what the current issues are for each of the key internal stakeholder groups,” Hixson said. “How will this new system make their jobs easier? Every company has different needs for each of these groups, and you need to figure out what your company’s issues are.”

Stakeholders can usually be broken down into the following groups: loan originators, processors, underwriters, and closers. Loan originators may be looking for more user-friendly online applications, a mobile-friendly interface, or an originator portal for interacting with borrowers and getting status updates during the life of the loan. Processors, underwriters, and closers are likely looking for automation solutions to replace manual tasks and save time.

Determine what the core needs are for these users and you will have an easier time not only in securing buy-in, but in selecting the right LOS vendor.

Identify Regulatory Compliance Challenges

In addition to less functionality and outdated interfaces, many old school loan origination systems struggle to keep up with ever-changing regulatory requirements.

Does your current LOS stay on top of regulatory requirements? Are the updates timely?

If the answer to those questions is “no,” that’s a significant point in favor of implementing a new one.

Consider Demands of the Market

One of the considerations that should capture attention with company leadership is the current loan origination system’s ability (or inability) to continue to meet market and customer demands.

A new LOS could improve your company’s speed to market, reduce the need for additional headcount to increase profit per loan, or improve your efficiency so that you can price more competitively.

“That question businesses need to ask themselves is, ‘How will I differentiate myself in the marketplace?’” Hixson said.

Millennials have become a larger and larger segment of the customer base for mortgage loans, and they have different demands than their predecessors.

“Customers today are looking for a friendly digital interface, simplicity and speed throughout the loan origination process, and the ability to get pre-qualified for a loan,” Hixson said.

For originators, who serve as the liaisons to customers, it’s important to establish the value of implementing a more modern LOS.

How Saxony Partners Can Help with User Buy-In for a New LOS

If your organization is considering switching to a new LOS, our team of financial services industry experts can make it easier to obtain user buy-in.

“We help our clients in the selection process,” Hixson said. “First we help them identify those critical pain points and needs. Then we recommend the best systems for remediating those issues, that will give them the biggest return on their investment. We can also help with LOS implementation once the selection has been made.”

If you are looking for a trusted partner to help determine the right LOS for your organization’s specific needs, contact Saxony Partners here.