Over the past few months, I have addressed the long-standing debate between the LOS vs ELS. Is there a difference? Does a true ELS really exist? Does the LOS still have a place? The answer to all of these questions is yes. The LOS of today is not trying to be an ELS. It is a standard pre-configuration of the Enterprise Lending Solution and is generally geared for small to mid-size regional banks and credit unions looking to get up-and-running quickly with little configuration or customization. The ELS, on the other hand, is highly customizable and is designed for larger lenders with internal IT staff and development resources looking to create customized platforms that mirror their internal processes while leveraging extremely advanced technology. Both platforms are meant to increase throughput, decrease costs, and mitigate risk while maintaining compliance.
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| Bigger is not always better. Start off with technology that fits your current needs. |
As we enter the halfway point of the year, it is more important for lenders to recognize their pain points and what is holding them back from success in this “Borrower’s Market”. By recognizing whether you have the internal resources to manage and customize an ELS or whether you want your vendor to take 100% of this on so you can focus on your business, you can begin to decide what is right for you – a loan origination solution or an enterprise lending solution. The line gets blurrier as the customization goes up, but it is crucial to know that you can choose to implement an LOS's best lending pre-configuration with plans to move up to an ELS. Getting live on a system is crucial in order to establish a foundation on which to build upon. In addition, setting expectations upfront with your new vendor and having a well-defined process led by an Internal Project Manager can help reduce the risk of over-customization that can hold back go-live. By knowing what is crucial to your business can help establish a strong system, leading to happier customers and the beginning of a long and prosperous partnership.
So are you ready to make the switch? How long will you let the inefficiencies of antiquated systems play a detrimental role in your business? It’s amazing to me how many prospects come up to me complaining about how incredibly unhappy they are with the performance of their current platforms. I’ve been listening to what lenders have been saying in an effort to meet those needs unlike any other vendor in the mortgage technology space. It’s no secret that Mortgage Cadence’s ELS is second-to-none in the industry, and now, with our recent acquisition, we will now be able to offer more options to the credit unions and regional banks looking for an LOS.
The process of switching to the LOS or ELS of today is easier than you may think, and it’s worth it to get rid of a system that is handcuffing you with inefficiencies. Why do you think so many lenders are willing to sacrifice performance and stay in an unhappy partnership with their current vendor? What’s holding people back?
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