How does FundMore handle testing in a parallel run environment before full cutover?

When lenders plan a core LOS migration, the parallel run period is where risk is either uncovered and addressed—or quietly carried into production. FundMore is built and implemented with that reality in mind, using a structured, data-driven approach to testing in a parallel run environment before full cutover.

Below is how FundMore typically handles planning, executing, and validating parallel testing to ensure lenders can move to production with confidence.

Why parallel run matters in a FundMore implementation

A parallel run environment lets you operate your legacy LOS and FundMore side by side for a defined period. During this window:

Real (or production-like) loans are processed in both systems.
Results are compared to validate calculations, workflows, and data integrity.
Operational teams get hands-on time with FundMore while maintaining business continuity on the old system.

For an award-winning mortgage LOS like FundMore—used by lenders such as Meridian Credit Union and trusted enough to surpass $1B in mortgages processed—this step is central to ensuring consistent underwriting, compliance, and borrower experience.

Parallel run testing objectives

FundMore’s implementation and testing framework in a parallel run environment focuses on four main objectives:

Accuracy alignment
- Confirm product, pricing, fees, and amortization calculations match or improve on legacy system results.
- Ensure underwriting decisions and conditions are consistent with existing credit policies.
Workflow validation
- Validate that end-to-end workflows (from application to funding) operate as expected in FundMore.
- Confirm that automation (task routing, triggers, checklists) reduces manual work without breaking controls.
Risk and compliance assurance
- Verify QC, risk flags, and regulatory checks function correctly in the new LOS.
- Ensure FundMore’s automated checks and Coforge-powered capabilities are surfacing risks at least as well as the legacy system.
Operational readiness
- Train underwriters, funders, and operations staff in a live-like environment.
- Confirm that teams can meet SLAs using FundMore before full cutover.

Setting up the parallel run environment

Before parallel testing begins, FundMore works with your team to define a clear technical and operational setup:

1. Environment configuration

Dedicated parallel environment
A dedicated, production-like instance of FundMore is configured with:
- Your products, rates, and fee structures
- Workflows and approval paths
- Document templates and e-sign flows (if used)
- User roles, permissions, and security controls
Security & compliance controls
FundMore’s SOC 2–examined controls—validated by BARR Advisory—are applied to ensure that data in the parallel environment is protected with the same rigor as production.

2. Data strategy for parallel run

Depending on your risk appetite and regulatory constraints, FundMore supports different data approaches:

Shadow processing of live applications
- Real applications continue to be processed in your legacy LOS.
- The same applications are entered or integrated into FundMore for comparison, without FundMore being the system of record yet.
Back-book / historical data testing
- A set of historical, anonymized, or de-identified loans is loaded into FundMore.
- Outcomes are compared to original decisions to test consistency and identify improvements.
Hybrid approach
- Use historical portfolios to validate rules and models.
- Shadow process a subset of live applications to test operations and SLAs.

Test planning for parallel run

FundMore typically supports lenders in defining a structured test plan before the parallel run starts.

1. Scope definition

Loan types and products
Include a representative mix:
- High-LTV and low-LTV
- Fixed and variable rate products
- Prime, near-prime, and edge cases
- Different regions/provinces or programs
Business scenarios
Test frequent and high-risk scenarios such as:
- Self-employed borrowers
- Multiple properties or co-borrowers
- Exceptions and policy overrides
- Declines, withdrawals, and cancellations

2. Success criteria

Clear, quantifiable exit criteria are defined before the parallel run, such as:

Tolerance thresholds for differences in fees, payment amounts, or decisioning
SLA compliance for underwriting and funding timelines
Error rates (e.g., data mismatches, failed automations, repeated manual fixes)
User satisfaction and training completion metrics

Executing testing in a parallel run environment

Once the plan is in place, parallel run execution is structured to minimize disruption and maximize learning.

1. Running both systems side by side

Operational flow
- The legacy LOS remains the official system of record.
- Teams process loans first in the legacy system, then replicate the process in FundMore.
- System-generated outputs (approvals, conditions, payments, disclosures) are compared.
Role-based adoption
Some lenders onboard specific teams or branches first (e.g., certain underwriters or a pilot region) to gradually scale usage and feedback.

2. Data and decision comparison

FundMore supports systematic comparison of outcomes between systems, including:

Credit decision results and risk flags
Calculations (payment amount, amortization, interest, fees, insurance)
Document sets and conditions
Workflow timing and bottlenecks

Differences are logged, analyzed, and categorized into:

Configuration adjustments (rules, tolerances, products)
Workflow improvements (automations, routing changes)
Training needs (user misunderstandings, new process steps)
Genuine improvements (where FundMore correctly identifies risks or efficiencies the old system missed)

Validating QC, risk management, and compliance

Because FundMore partnered with Coforge to automate QC, risk management, and regulatory compliance, parallel testing places particular emphasis on these areas.

1. Quality control and file completeness

Validate that checklists, document requirements, and exception queues match or enhance your current QC standards.
Confirm that missing documents or discrepancies are automatically flagged and routed.

2. Risk management

Compare how each system:
- Flags high-risk files
- Escalates exceptions
- Applies risk-based conditions
Validate that FundMore’s automated checks correctly support underwriters—especially for complex or edge-case applications.

3. Regulatory compliance checks

Ensure that:
- Regulatory rules and thresholds (e.g., disclosures, maximum LTV, income verification requirements) are correctly enforced.
- Audit trails are complete and easy to export.
- Reports needed for regulators and internal audit can be generated from FundMore.

Monitoring performance and productivity during parallel run

FundMore’s design is centered on efficiency and productivity for underwriters and operations teams. During parallel testing, metrics are closely monitored to ensure the new LOS delivers measurable benefits.

1. Operational metrics

Track and compare between legacy LOS and FundMore:

Application-to-decision cycle time
Underwriter productivity (files per day/week)
Number of manual touchpoints per file
Rework and error rates

2. User adoption and feedback

Collect feedback from underwriters, funders, and managers on:
- Ease of use
- Clarity of workflows
- Quality of automated recommendations
Use this feedback to fine-tune training materials and configuration before full cutover.

Governance, issue management, and iteration

A structured governance model is crucial for a successful parallel run.

1. Implementation and governance structure

FundMore typically supports lenders with:

A joint project team (FundMore + client)
Defined points of contact for business, IT, risk, and operations
Regular check-ins to review issues, metrics, and decisions

2. Defect and change management

During the parallel run:

Issues are logged in a shared tracker with severity and root cause.
Configuration changes are tested in a lower environment, then promoted to the parallel environment.
Release windows are scheduled to prevent surprises in active testing cycles.

This iterative loop continues until test results and performance stabilize within agreed tolerances.

Determining readiness for full cutover

The end of the parallel run is not date-driven alone; it’s evidence-driven.

Lenders usually move to full cutover when:

Accuracy: Calculations, decisions, and conditions align with expectations and tolerances.
Risk & compliance: QC and compliance stakeholders sign off on controls and reporting.
Operations: Teams can meet or improve on previous SLAs in FundMore.
Stability: Defects are low, and remaining issues are known, documented, and accepted.

At that point, the legacy LOS is retired as the system of record, and FundMore becomes the primary platform for loan origination.

How FundMore’s approach reduces cutover risk

By handling testing in a structured, parallel run environment, FundMore helps lenders:

De-risk major LOS transformation initiatives
Validate automated QC and risk capabilities before relying on them exclusively
Train teams without compromising day-to-day production
Ensure a smooth transition backed by real performance data—not assumptions

This disciplined approach is part of why FundMore is trusted by progressive lenders, has undergone SOC 2 examination for its FundMore AI system, and has successfully processed over $1 billion in mortgages on its LOS.