The Downturn Brings The Possibility To Consolidate And Simplify Into One, More Powerful LOS

As companies go in search of market share, the temptation is to become all things to all people. If the products you’re selling today aren’t bringing in enough customers, just develop some new ones, is often the thought process.

In some industries, this can make sense. In others, where splitting the focus of a development team can lead to problems for end users, it can be a strategic error.

Recently, we’ve noticed a trend emerging where software developers who have achieved a measure of success with a platform in one market are designing new ones to compete elsewhere. For developers of mission-critical software, this is a gamble where the end result is not always success.

Our experience has shown us that going all in on a single powerful platform is a more streamlined, strategic approach.

The Allure of Multiple Platforms

At first glance, offering multiple Loan Origination Systems (LOS) may seem like a sound strategy. It allows companies to target different market segments with tailored solutions. It might also allow lenders who use the platforms to originate new loan programs.

This approach can appear innovative and customer-centric, potentially attracting a wider range of clients.

What many fail to consider are the significant hidden costs associated with maintaining multiple platforms. These include development overhead, different sets of compliance requirements to manage, inconsistent user experience requirements, and the risk of allocating resources inefficiently.

If the developer can manage through all of that, they would now have two separate help desks manned by separate groups of experts. Customer success would be very difficult to ensure.

Before Mortgage Cadence consolidated our loan origination expertise into a single powerful LOS platform, known as the Mortgage Cadence Platform (MCP), we were running two platforms. The consolidation to one singular platform has been incredibly positive.

The Case for Consolidation

Focusing all our efforts on MCP has allowed us to streamline development, creating a more feature-rich platform. Compliance management is simplified and we’re able to offer a consistent user experience to all lenders. Finally, maintenance, hosting, and support costs are significantly reduced when managing a single platform.

All of this has allowed us to create more the most powerful loan origination software delivered at a lower cost than ever before.

Moving to a public cloud infrastructure further enhances the benefits of consolidation. It offers improved scalability, reliability, and cost-effectiveness compared to private hosting solutions. This shift allows companies to focus on innovation rather than infrastructure management.

Even better, providing a single, powerful platform has allowed us to build in all the product origination capabilities lenders need today. There is no reason for a lender to buy separate LOS’s for traditional mortgages, reverse mortgages, and home equity loans. MCP can do all of that, and more.

While the trend of offering multiple LOSs may seem attractive, the long-term strategic benefits of consolidation are clear, both for the developer and the lender. If you’re wondering how much power can be built into a single, unified loan origination platform, reach out to us today to see a demo of MCP.