This article covers different ways to Launch your loan management system. This includes things like import strategy, and launch strategy. It’s very critical to have a strategy selected early on so that all areas of you (the Lender) and the LoanPro team can be on the same page on how to best assist you.
We strongly advise against completing your import without help from the LoanPro team. Our team will be able to provide strategies and help to verify that data is making it into LoanPro's Loan Management System (LMS).
Seasoning: A “fresh start” in the LoanPro LMS. With the Seasoning launch method, you will not be pulling any data from your old system and importing it into LoanPro LMS. New loans that are boarded will be created and serviced directly in LMS and any old loans will run their remaining course in your old servicing system. This method means that no import is done into LoanPro, and is commonly used when lenders have an extremely tight launch deadline.
Scorched Earth: With the Scorched Earth launch method, you will pull all data from your old system and import it into LoanPro LMS in a single day. You will choose a day in which you will completely stop servicing in your old system, pull all of the data from the system, and import it all into LoanPro LMS before commencing servicing in LoanPro LMS from that point forward. This method is very high stress and high stakes, and we do not recommend using this method. Instead, we recommend the Hybrid model explained below.
Hybrid: With the Hybrid launch method, you will pull all data from your old system and it will all be imported into LoanPro LMS over an extended period of time. In most cases, the Hybrid launch method will be carried out over a week or two and will be done in phases. Each phase will consist of pulling data from the old system, importing it into LoanPro LMS, and performing data validation to compare the old to the new for calculation accuracy. The Hybrid launch method is best accompanied by several test runs before continuing to final launch. When it is time for the actual launch, it is typically broken up into 3 phases.
- Phase 1: This phase is performed over a multiple-day span, and is done while your old system is still the system of record. This phase pulls into LoanPro all of the old, Static Data that won’t change over time This includes things like:
- Customer Information - Name, address, phone number, etc.
- Paid Off Loans - All history
- Loan Setup information of all loan
- Payments/charges/due date changes etc. that were posted more than X days ago that don’t have the ability to change between the importing of the data, and the launch with LoanPro.
- Any other static information that won’t change
- Phase 2 (launch day): This is the day you cut off from your old software, and import all remaining information into LoanPro. Once phase 2 is complete, you will be “live” in LoanPro. To detail it out, this information is all new, Dynamic Data that needs to be imported into Loanpro. This typically consists of:
- All customer that have been originated since Phase 1
- All loans that have been originated since Phase 1
- All transactions that have been made since the designated cutoff date in phase one
- Delta changes from phase 1 to phase 2 launch. (Customer address updates, etc..)
- Phase 3 (Post launch day): This is the cleanup of any delta’s that have occurred since the launch day.
- Payment reversals of payments made on an old system that were imported as “active” for phase 2, that now need to be reversed in phase 3.
Full History: Importing the full history of loan data into LoanPro LMS is exactly that; All customer information, payment profile information, loan setup information, and transaction history (payments, fees, charge off, etc.) from the entire life of each loan will be imported into LMS. This is typically recommended if the full data set is available.
Full history import will follow a specific order of Import as follows:
- Customer Information
- Payment Profiles
- Link Payment Profiles to Customers
- Loan Setup Information (Customer Linked to Loan here)
- Loan Transactions
- Recovery Payments
- Charges (Fees)
- Suspend or Resume Interest Accrual
- Due Date Changes
- Escrow Transactions
- Charge Off Transactions
- Past Due Adjustments
Snapshot: Importing a “snapshot” of the loan is providing snapshot values of the loans at the time of import. This is commonly used in scenarios where history from an old system cannot be matched inside of LoanPro. The way the math on the import will work is that you provide the Loan Amount, Interest Rate, and Payment Amount then from that information, we will assist in dictating what the remaining term is on the loan. Doing this essentially “bakes in” all of history of the loan.
The advantage to using the snapshot import option is that you won’t require the historical transaction data for your loans. Once you’ve retrieved the remaining principal balance, interest rate, and calculated the remaining term for the loans, you can simply import the Customer Information and the Loan Setup, then commence servicing the loans from that point forward.