If you work for a bank, financial institution, or mortgage broker and your business is in need of a new or upgraded loan servicing software package, there are essentially two distinct ways you can go about obtaining it. Your business can either contract with a software development firm to build one for you, or your business can purchase an out of the box system that has already been developed and is presently functioning in many other like kind businesses.
Each way of approaching this acquisition has its positives, negatives, and associated risk. The most conservative way of going about obtaining a loan software system would be to purchase one that already has been built, and is currently being used by other businesses in your industry.
By following this approach, you will at least be able to acquire a system that will meet your minimal needs. Some of these systems, but not all of them, can be customized to meet some of the individual requirements your firm has.
The big negative about approaching the solution in this fashion, is that more than likely it will not be able to be tailored to do everything that your company requires. Another significant downfall to purchasing an out of the box system, is that as your businesses changes, it will be doubtful that your loan servicing software package will be able to adjust quickly enough to keep up with all of your companies needs.
If it sounds like purchasing an out of the box system is the wrong way to go about this, please keep reading because you could not be more wrong. Unless you are a huge business, with virtually unlimited resources that is exactly what you should do.
Developing your own software system can and often is a nightmare, to say the least. In fact, after your firm has spent millions of dollars on it, there could be a very good possibility that it never works correctly, and you will never be able to get it to.
There is so much detailed work that goes into planning, building, and documenting a new software system that entire books are written on it. The possibility of a small company ever finding the right software developer to see the project through to fruition, while staying on budget will be extremely difficult, if not impossible.
Then, if everything happened to go better than expected, the project was completed successfully. What transpires in the future if your company needs to upgrade the system and the software engineers that originally worked on the project, are no longer with the software development company? If you think that doesn’t happen, you better think again.
Without question, if you are a small institution with limited funds, the best way to go about acquiring a new loan servicing software system for the purpose of processing mortgages is to purchase an out of the box ready to use one. It might not be the most glamorous way to go about it, but it certainly will be the least risky, and will at the very minimum ensure your firm obtains a product that functions satisfactorily.