When a lender transitions to a new loan origination system, something interesting happens: they return to the basics.
They don’t just ask about the new features that prompted the change — they want to understand how the system handles everything. The result? Our team often finds itself walking through the entire lending process alongside the lender’s team.
Some might see this as tedious. I see it as energizing. It’s fascinating to watch how different lenders interpret requirements and what they expect from mission-critical technology. When they ask the fundamental questions, the ones that make us stop and re-examine what we think we know, that’s when things get really interesting.
It’s healthy. It keeps us sharp. And more often than not, these back-to-basics conversations uncover ways to improve efficiency and elevate the borrower experience.
But here’s the twist: the basics themselves are changing.
When “Old Stuff” Becomes New Again
Lately, our teams have been revisiting areas that once felt settled: RESPA requirements, escrow calculations, foundational compliance rules. You’d think these would be constants by now. Yet as new lenders come onboard and the market evolves, even long-established fundamentals require a fresh look.
And that’s a good thing. This industry benefits when we challenge assumptions and rebuild processes from the ground up.
One of the biggest changes on the horizon is the shift to new credit scoring models; FICO 10T and VantageScore 4.0.
This isn’t a small tweak. It’s a re-engineering of the system that influences everything from compliance to borrower communication.
Take something as simple as credit score range disclosures. Borrowers must be told where they fall within the scoring spectrum: “you scored in the 50th percentile,” for example. Straightforward enough.
But with new models come new questions:
- Will scoring ranges change?
- How will credit vendors deliver this data?
- What happens when a borrower’s percentile shifts between old and new models?
These aren’t small details. They’re the foundation of fair lending, compliance accuracy, and underwriting consistency.
The Ripple Effect Across the Ecosystem
The complexity doesn’t stop there. Every stakeholder is affected, and many are still searching for answers.
Mortgage insurance providers may adjust underwriting criteria. Secondary market players are evaluating the impact on loan pools and investor standards. Rating agencies must prepare to assess loans originated under these new models.
Some portfolio lenders have already adopted them, but for the broader market, the implementation timeline remains uncertain. That uncertainty challenges technology providers like us. We’re developing solutions that work not only for today’s rules but also for a tomorrow where those rules keep evolving.
Collaboration Is Critical
Navigating this transition demands deep collaboration across the industry and within our own organization. Our engineering, compliance, and client service teams are working more closely than ever, not just to build features but to anticipate edge cases and design resilience into our platform.
This is mortgage technology in 2025, dynamic, fast-moving, and demanding. The basics still matter, but they’re no longer fixed.
The lenders who will succeed are those who adapt quickly, ask the right questions, and partner with technology providers who do the same.
At Mortgage Cadence, we’re embracing this evolution. Getting back to basics doesn’t mean standing still, it means building a foundation strong enough to support whatever comes next.
If you’d like to see how we’re helping lenders prepare for that future, contact us for a demo today.
By Melissa Kozicki, CMB, CMCP, CAMS, Director of Compliance at Mortgage Cadence
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