MBA NewsLink Q&A: Kelli Himebaugh on Why Some Lenders Are Rethinking Their Loan Origination Systems

After several years of navigating a challenging mortgage market, many community lenders, independent mortgage banks and credit unions are taking a fresh look at the systems that support their lending operations. MBA NewsLink interviewed Kelli Himebaugh, executive vice president at LOS provider LendingPad, on what lenders should consider as they evaluate their options and position themselves for the next market cycle.

Himebaugh is executive vice president of sales and lending at LendingPad, a cloud-based LOS provider serving mortgage lenders, banks, credit unions and brokers. She has held senior roles at Mortgage Builder Software, Constellation Mortgage Solutions and VirPack, leading initiatives across sales, client development, professional services and product innovation.

MBA NewsLink: Many community lenders, credit unions and independent mortgage banks are taking a fresh look at their loan origination systems. What’s driving that shift today?

Himebaugh: Over the past few years, most lenders understandably focused on managing through a difficult market. Technology projects were often delayed while organizations concentrated on controlling costs, maintaining profitability and adapting to changing market conditions.

Today, the conversation has shifted. Lenders are preparing for the next phase of growth and asking whether the systems they’ve relied on for years still support the way they want to do business. It’s not just about features anymore, it’s “Does this platform actually help us run more efficiently, or is it creating complexity and workarounds that eat into our staff’s time?

I believe the current market also presents an opportunity. With lower production volumes, many lenders have the time to evaluate their operations and make improvements that would be much harder during a busier stretch. They’re using this period to prepare for future growth rather than simply reacting to today’s conditions.

MBA NewsLink: What are lenders telling you about the biggest operational challenges they want technology to solve?

Himebaugh: The word I hear most often is complexity.

Mortgage lending is already highly regulated and operationally demanding. The system at the center of that process should make work easier, not harder.

Many lenders describe environments where employees move between multiple applications, manually re-enter information or rely on workarounds because their systems no longer support the way they operate. Over time, those fixes become part of everyday business, adding inefficiency and potential compliance risk.

Usability is another area that’s often overlooked. If loan officers, processors and underwriters spend unnecessary time navigating software instead of serving borrowers, productivity suffers. Technology should support the way people work, not force people to work around the technology.

We’re also hearing more emphasis on partnership. Lenders want providers who understand the mortgage business, respond quickly and keep investing in their platforms as the industry moves forward.

MBA NewsLink: What should lenders prioritize when evaluating a new loan origination system?

Himebaugh: I encourage lenders to start with their business objectives rather than a feature checklist.

One of the first questions they should ask is whether the platform will support where the organization wants to be three to five years from now: Will it be able to scale as the business grows and flexible enough to keep pace with changing regulations, investor requirements and borrower expectations?

Configurability matters too. Every lender has unique processes, and those processes will keep changing. The goal should be to configure workflows as the business shifts, not rely on costly custom development or outside consultants every time an adjustment is needed.

Community lenders should also consider who will be managing the platform. Many banks and credit unions don’t have dedicated mortgage IT teams, so ease of administration matters. The right system should empower the mortgage operation rather than create additional dependence on technical resources.

Finally, look beyond the software itself. A loan origination system is a long-term investment, so evaluate the technology partner just as carefully as the technology. Implementation, training, customer support and a commitment to ongoing innovation often carry as much weight as the product itself.

MBA NewsLink: How should lenders think about the long-term cost of origination technology beyond the initial purchase price?

Himebaugh: The purchase price is only one part of the equation.

The larger costs are often less visible: manual processes, duplicate data entry, disconnected systems, additional administrative effort and the internal resources required to maintain a platform that no longer fits the organization’s needs.

There’s also a cost to inflexibility. If every operational change requires custom development or outside consulting, those expenses add up over time and can slow an organization’s ability to respond to changing business needs.

That’s why it’s important to look at total cost of ownership rather than upfront cost alone. Sometimes the most expensive system isn’t the one with the highest price tag — it’s the one that quietly creates inefficiencies every day.

MBA NewsLink: How has cloud technology changed what lenders should expect from a modern loan origination system?

Himebaugh: Cloud technology has changed what’s possible for lenders of every size.

Years ago, sophisticated lending platforms often required significant investments in hardware, infrastructure and ongoing maintenance. Today, cloud-native solutions provide faster deployment, automatic updates and greater flexibility, while reducing much of that administrative burden.

They also make it easier to integrate with other technologies, add new capabilities and respond quickly as business needs change.

For community lenders, credit unions and independent mortgage banks, that matters a great deal. They can access sophisticated capabilities without the level of infrastructure and IT support that was once required, freeing them to stay focused on serving borrowers and growing their business.

MBA NewsLink: What advice would you give a lender that’s beginning to evaluate a new loan origination system?

Himebaugh: Start by thinking about where you want your business to be, not just what you need today.

The right platform should support your long-term strategy, whether that’s improving operational efficiency, expanding into new markets or creating a better experience for both employees and borrowers.

Talk to the people who use the system every day. Consider how easily it can adjust as your business changes, how well it integrates with the rest of your technology environment, and whether your team can manage it without becoming overly dependent on IT resources.

Most importantly, look for a partner who will grow with you, not just a vendor who sells you software. Mortgage lending will keep changing, and the right partner will keep investing in innovation, supporting your success and helping your organization navigate whatever comes next.

(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes submissions from member firms. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)