FOR IMMEDIATE RELEASE  

For more information contact:
Carleton Sales Team
574.243.6040 option #3
sales@carletoninc.com

 

More than three-quarters of lending professionals rate modernization as extremely or very urgent, yet cost constraints, limited resources, and disruption concerns continue to slow progress

SOUTH BEND, IN — Carleton, a leading provider of compliant loan calculation and disclosure solutions, today released findings from its inaugural Platform Migration and Modernization Survey, revealing that the consumer lending industry is facing mounting pressure to modernize aging technology infrastructure. While urgency is near-universal, a significant share of lending institutions remain anchored to legacy systems that expose them to growing compliance, security, and operational risk.

A Market That Knows It Must Move — But Largely Has Not

The data paints a picture of an industry in transition, but one where the pace of change remains slow relative to the scale of the operational, compliance, and security risks involved. Nearly nine in ten respondents (87%) are engaged in migration in some form, yet only 8.7% have fully completed the process. More than half of respondents (74%) describe their current environment as primarily legacy, and just 10.6% operate on a fully cloud-based platform.

The gap between awareness and action is striking. A combined 76.5% of respondents rated the need to modernize their platform as extremely or very urgent. At the same time, more than one in five organizations (23%) report they are still only considering migration without a defined timeline. For an industry built on precision calculation and regulatory accountability, that gap represents significant and compounding exposure.

What Is Holding Lenders Back

The barriers to migration are structural, not philosophical. Respondents who have delayed modernization pointed most frequently to cost constraints, cited by 28.6%, and limited internal resources, cited by 31.6%. Disruption concerns were cited by 15.6% of respondents, reflecting a deeply ingrained caution about operational continuity during a system transition.

Notably, only 5.3% of respondents cited confidence in their current system as a reason to delay. This tells an important story: the industry is not avoiding migration because it believes its legacy platforms are working well. It is avoiding migration because the path forward is viewed as costly, complex, and risky in ways many organizations do not yet feel equipped to manage internally.

The operational burden of legacy systems compounds the problem. One-third of respondents report spending 80 to 100% of their platform resources on maintenance rather than new development. An additional four out of ten spend between 60 and 80% on maintenance. Organizations carrying that level of overhead have limited internal capacity available to support large-scale modernization initiatives, creating a cycle that is difficult to break without external support.

The Risks of Staying Still Are Escalating

Compliance risks were cited as the most common operational challenge, identified by 35.4% of respondents. Calculation accuracy was named by 23.2% as the area of their platform most in need of modernization, a figure that carries serious implications in a regulatory environment where incorrect consumer lending calculations can trigger enforcement scrutiny, borrower harm, and reputational damage.

Implementation timelines reveal another layer of the problem. Nearly one-third of respondents say it takes six months or more to implement a new product or regulatory change, and 12.7% report timelines exceeding one year. Institutions operating that slowly face increased exposure as regulatory updates and market demands move faster than their systems can adapt.

Security compounds the picture further. A security incident was identified as the single most likely event to trigger modernization, cited by 30.2% of respondents. The pattern is troubling: for too many institutions, the forcing function for migration is a crisis rather than a strategy.

The survey also revealed that organizations are increasingly looking for strategic guidance alongside technology solutions. Nearly two-thirds of respondents identified hands-on migration support as the most valuable resource in helping modernize their lending platforms.

“The survey findings echo what Carleton hears in sales and client conversations every day,” Tim Yalich, Vice President of Business Development at Carleton. “Institutions still running on legacy systems, some more than two decades behind their industry peers on technology, are not simply managing aging infrastructure. They are limiting their ability to compete, to grow into new states or asset classes, to integrate with modern fraud prevention tools, and to access the AI-enabled capabilities that are rapidly reshaping how lending decisions are made and monitored.”

About the Survey

The Platform Migration and Modernization Survey was conducted online during the second week of May 2026. The survey gathered 250 responses from lending professionals across banking, auto finance, and fintech. Results are directionally representative of the U.S. consumer lending technology landscape.

For more information about these survey results and to learn more about Carleton’s compliance calculation solutions, contact us.

About Carleton, Inc.

Carleton provides integrated financial solutions that support the full lending lifecycle, delivering accurate and compliant loan origination calculations, automated document generation and delivery, and expert audit and compliance services nationwide. For more than 55 years, Carleton has been trusted by lenders, financial institutions, and technology providers to navigate complex federal and state regulations while reducing risk and improving operational efficiency. By unifying calculation accuracy, regulatory compliance, and document workflows into a foundational solution, Carleton elevates its partners’ platforms, helping them accelerate funding, maintain confidence in compliance, and focus on growing their business. To learn more about Carleton’s lending solutions, contact our sales team at sales@carletoninc.com or 574-243-6040 option #3.

FOR IMMEDIATE RELEASE  

For more information contact:
Carleton Sales Team
574.243.6040 option #3
sales@carletoninc.com

 

Nearly two-thirds of lenders lack confidence to survive a multi-state examination today, as state regulatory activity surges and APR calculation errors prove rampant

SOUTH BEND, IN — Carleton, a leading provider of compliant loan calculation and disclosure solutions, released findings from a nationwide March 2026 survey, revealing a widespread compliance confidence crisis driven largely by a dramatic shift toward state-level regulatory oversight and systemic vulnerabilities in how organizations validate lending calculations.

The online survey, presented to more than 2,000 financial services and automotive lending professionals, found that the regulatory landscape has fundamentally changed. A commanding 73% of respondents reported that state regulators have been more active than their federal counterparts over the last 24 months; a development with profound implications for any organization operating across multiple jurisdictions. Compounding this challenge, 89% of respondents indicated that regulatory changes requiring system or calculation updates occur frequently or almost always, underscoring the relentless pace of change that compliance teams are being asked to absorb.

Perhaps the most striking finding is the prevalence of APR errors under the Truth in Lending Act (TILA). A staggering 72% of organizations identified at least one loan requiring an APR reimbursement under TILA in the past 12 months alone. These are not only hypothetical risks, but they also represent active, ongoing compliance failures with direct financial and legal consequences. The most commonly cited drivers of calculation errors align with longstanding industry pressure points: incorrect application of interest rates, improper calculations or APR disclosures, miscalculated fees and add-on products, and applying complex of tiered rates structures and variable payment schedules.

The survey data also shows a significant gap between the scale of compliance risk and the rigor of current validation practices. Only 10% of organizations validate their calculations in a systematic, automated manner. The majority, 56%, rely on manual or only partial checks, leaving them exposed to pattern-of-practice violations that regulators specifically target. This gap is reflected directly in confidence levels: 67% of professionals surveyed said they are not confident or only slightly confident in their organization’s ability to survive a multi-state examination today.

The operational burden is profound. With state-level rules varying widely and changing frequently, organizations operating across multiple jurisdictions face compounding complexity in keeping systems current and calculations accurate. Respondents pointed to the difficulty of interpreting multi-state regulatory requirements, updating and testing loan calculation logic, and coordinating changes across multiple vendors or internal systems as their top compliance challenges. The cost of getting it wrong, in the form of reimbursements, audit findings, and regulatory scrutiny, is increasingly tangible.

Looking ahead, lenders indicated strong demand for tools that reduce errors and close compliance gaps. Top desired improvements included more accurate and reliable calculation software, improved audit readiness and reporting, better real-time monitoring for compliance violations, and stronger system integration across lending platforms. Taken together, the findings reveal a sector urgently seeking greater accuracy, automation, and confidence without sacrificing operational efficiency.

“This data makes clear that the compliance challenge facing lenders today isn’t just about keeping up with regulatory changes, but also about having systems precise enough to catch errors before regulators do,” said Tim Yalich, Vice President of Business Development at Carleton. “When nearly three-quarters of lenders have already had to reimburse borrowers for APR miscalculations, and the majority are still relying on manual validation, the industry has a structural problem that demands a structural solution. Carleton exists precisely to give lenders the calculation accuracy and multi-state compliance confidence they need.”

 

About Carleton, Inc.

Carleton provides integrated financial solutions that support the full lending lifecycle, delivering accurate and compliant loan origination calculations, automated document generation and delivery, and expert audit and compliance services nationwide. For more than 55 years, Carleton has been trusted by lenders, financial institutions, and technology providers to navigate complex federal and state regulations while reducing risk and improving operational efficiency. By unifying calculation accuracy, regulatory compliance, and document workflows into a foundational solution, Carleton elevates its partners’ platforms, helping them accelerate funding, maintain confidence in compliance, and focus on growing their business. To learn more about Carleton’s lending solutions, contact our sales team at sales@carletoninc.com or 574-243-6040 option #3.

Subprime Auto Finance News released its 2026 “Special Finance 175: The Most Influential Companies” in the auto finance industry this month.

Carleton was thrilled to be featured on this list again this year, and the acknowledgement is a testament to our team’s ongoing commitment to innovation and to delivering unmatched support for our partners.

Nick Zulovich, senior editor at Cherokee Media Group, explains further in the magazine’s April issue saying, “These companies know to handle uncertainty and still deliver great value […].” Nick continued, “Let this issue be a salute to each of you, your management teams, your representatives in the field, and your support systems that go well beyond brick-and-mortar buildings and communications infrastructure.”

 

View Digital Magazine (April 2026)

 

About Carleton, Inc.

Carleton provides integrated financial solutions that support the full lending lifecycle, delivering accurate and compliant loan origination calculations, automated document generation and delivery, and expert audit and compliance services nationwide. For more than 55 years, Carleton has been trusted by lenders, financial institutions, and technology providers to navigate complex federal and state regulations while reducing risk and improving operational efficiency. By unifying calculation accuracy, regulatory compliance, and document workflows into a foundational solution, Carleton elevates its partners’ platforms, helping them accelerate funding, maintain confidence in compliance, and focus on growing their business. To learn more about Carleton’s lending solutions, contact our sales team at sales@carletoninc.com or 574-243-6040 option #3.

FOR IMMEDIATE RELEASE  

For more information contact:
Carleton Sales Team
574.243.6040 option #3
sales@carletoninc.com

 

Jacksonville, Fla: LAUNCHER.SOLUTIONS (Launcher), a technology provider of loan origination technology for automotive and consumer lenders, announced today a strategic product integration between its appTRAKER™ Loan Origination System (LOS) and CarletonDocs® from Carleton, Inc.’s compliant document generation platform.

By incorporating CarletonDocs® into the appTRAKER™ platform, Launcher further strengthens its comprehensive loan origination ecosystem, providing lenders with a seamless process from application through document preparation and funding. The integration allows lenders to generate dynamic deal jackets with accurate disclosures while maintaining compliance with evolving state and federal regulations.

“We’ve had a long and productive partnership with Carleton, and our successful integrations with CarletonCalcs® have delivered TILA-accurate disclosure calculations and regulatory compliance validation for lenders on the appTRAKER™ platform,” said Nikh Nath, President of LAUNCHER.SOLUTIONS. “Building on that strong foundation, integrating CarletonDocs® was a natural next step. It allows us to extend that same level of accuracy and compliance into the document generation process, enabling lenders to produce compliant lending documents directly within their workflow. Our goal is always to provide lenders with practical, well-integrated tools that improve efficiency while maintaining confidence in the accuracy and compliance of every deal.”

“Our work with the Launcher team over the years has been instrumental in driving meaningful progress, and we’re excited to see our partnership continue to grow and evolve,” said Matt Ruszkowski, President and COO of Carleton, Inc. “By expanding Carleton’s CarletonDocs® document generation functionality within the appTRAKER LOS platform, we are enabling their customers to streamline workflows, reduce operational risk, and maintain confidence in compliance as regulatory complexity continues to evolve. This enhancement reinforces the value Carleton brings to our partners, not just as a technology provider, but as a trusted compliance ally.”

The integration with CarletonDocs® reflects Launcher’s continued commitment to expanding the capabilities of the appTRAKER™ platform through strategic technology partnerships. By combining workflow automation, integrated data services, and regulatory compliance tools, appTRAKER™ enables banks and lenders to streamline lending operations while maintaining confidence in compliance within an increasingly complex regulatory landscape.

 

Read EIN Presswire Announcement

 

About LAUNCHER.SOLUTIONS

LAUNCHER.SOLUTIONS is a technology products and services company built on the foundation of care, understanding, innovation, and speed. It specializes in loan originations for consumer and automotive lending institutions, regional banks, and credit unions. Its product offerings include appTRAKER™ LOS for indirect automotive and consumer direct lending and leasing, myDEALER.CARE dealer relationship management system, and my.LOAN, a customer digital acquisition and self-service and communication solution. Learn more at www.launcher.solutions or call 877.5LNCHER. Follow LAUNCHER.SOLUTIONS on LinkedIn.

 

About Carleton, Inc.

Carleton provides integrated financial solutions that support the full lending lifecycle, delivering accurate and compliant loan origination calculations, automated document generation and delivery, and expert audit and compliance services nationwide. For more than 55 years, Carleton has been trusted by lenders, financial institutions, and technology providers to navigate complex federal and state regulations while reducing risk and improving operational efficiency. By unifying calculation accuracy, regulatory compliance, and document workflows into a foundational solution, Carleton elevates its partners’ platforms, helping them accelerate funding, maintain confidence in compliance, and focus on growing their business. To learn more about Carleton’s lending solutions, contact our sales team at sales@carletoninc.com or 574-243-6040 option #3.

FOR IMMEDIATE RELEASE                                                

For more information contact:

Carleton Sales Team

574.243.6040 option #3

sales@carletoninc.com

 

While lenders recognize AI’s potential to reduce compliance errors, skepticism persists across the industry

SOUTH BEND, IN (September 30, 2025) — Carleton, Inc., a leading provider of compliant loan calculation and disclosure solutions, today released findings from a nationwide survey highlighting the lending industry’s perspectives on artificial intelligence (AI) in loan compliance and error detection. The results reveal a mix of optimism and caution, with many lenders acknowledging AI’s promise but remaining hesitant to fully trust its application in high-stakes compliance processes.

The survey, presented to more than 2,000 lending, banking, auto finance, and fintech professionals throughout the country, found that trust in AI-driven systems remains limited. Only 27% of lenders reported that they completely or mostly trust AI for loan calculations, while 30% remained neutral and 43% expressed only slight trust or no trust at all. This cautious outlook underscores the industry’s continued reliance on proven, compliant systems even as interest in AI accelerates.

Confidence in AI’s compliance impact is similarly mixed. While 43% of lenders agreed or strongly agreed that AI could effectively detect and prevent compliance errors, 28% remained neutral and nearly 30% disagreed. The survey also revealed that compliance issues persist as a regular pain point: one in five lenders reported experiencing compliance-related issues on a regular basis, and nearly a quarter encounter them occasionally.

When asked about their greatest frustrations in the compliance process, the top responses reflected the pressures AI tools are often positioned to address: the risk of making a costly compliance error (26%), the time required to finalize deals (25%), and the complexity of ever-changing regulations (19%). Manual paperwork and lack of transparency with lending partners were also cited as key challenges.

Furthermore, many financial institutions rely on third-party vendors for AI solutions, which introduces additional compliance risks. Without a robust governance framework and clear accountability, it’s difficult to ensure these systems are secure and compliant.

“These findings show that while lenders see potential in AI to strengthen compliance, the trust gap remains significant,” said Tim Yalich, Vice President of Business Development at Carleton. “The industry is rightly cautious, as lenders need assurance that AI-driven systems can deliver the same level of accuracy and reliability as proven compliance solutions. Carleton remains committed to combining innovation with the rigorous compliance standards our partners rely on.”

About Carleton, Inc. 

Carleton is the country’s leading provider of financial calculation software, loan origination compliance support, and document generation software. With over 55 years of experience, our ongoing expertise and industry knowledge reaffirms why Carleton is a trusted partner. Founded in conjunction with the Truth In Lending Act, Carleton provides expert compliance support with continuous accuracy in all our calculations and disclosures at a state and federal level. To learn more about Carleton’s lending solutions, contact our sales team at sales@carletoninc.com or 574-243-6040 option #3.

FOR IMMEDIATE RELEASE                                                

For more information contact:

Carleton Sales Team

574.243.6040 option #3

sales@carletoninc.com

 

SOUTH BEND, IN (September 3, 2025) — Carleton, Inc., a leading provider of compliant loan calculation and disclosure solutions, today released findings from a nationwide survey highlighting the extent to which lenders face ongoing compliance risks, calculation inaccuracies, and regulatory change management challenges that impact both operations and customer trust.

The survey, presented to more than 2,000 lending, banking, auto finance, and fintech professionals, revealed that over two-thirds of organizations experience loan payment discrepancies weekly or monthly, underscoring the potential for costly errors and compliance exposure. The most common causes cited were miscalculated fees and add-on products (23%), incorrect applications of interest rates or APRs (23%), and human data entry mistakes (21%). Confidence in existing systems also remains low, with 44% of respondents rating their confidence only a 1 or 2 on a five-point scale. Nearly half of all respondents reported that compliance issues such as inaccurate APRs, outdated disclosures, or fee miscalculations had already triggered rework, audit findings, or even legal exposure.

Regulatory change management is another significant pressure point. Sixty percent of respondents said their organizations struggle to keep internal systems and calculations aligned with updates to federal and state lending rules. While only about one-third of organizations reported they can adjust to new requirements in less than a month, nearly a quarter said it takes them three months or more to implement changes. Respondents cited interpreting complex regulations such as TILA, HOEPA, and state usury limits as their top compliance challenge (21%), followed closely by updating and testing loan calculation logic (19%) and coordinating changes across multiple vendor or internal systems (18%).

Complex loan structures further compound the problem. Thirty-one percent of respondents said tiered rates, variable payment schedules, and other intricate structures have a significant negative impact on their processes and often lead to delays and errors. Another 17% described these loan types as a constant source of problems for their organization. Only 14% said their current tools were able to handle complex loans seamlessly.

The operational burden of compliance updates is also evident. More than one quarter of respondents said their organizations require cross-functional teams to stay aligned with regulatory changes, often at the expense of day-to-day efficiency. When asked about the largest frustrations in their daily work, the most frequent response was the risk of making a costly compliance error (26%), followed closely by the time required to finalize deals (25%) and the ongoing complexity of everchanging regulations (19%). Manual paperwork and data entry were also cited as barriers to productivity (16%) with nearly the same proportion of organizations still relying on spreadsheets for loan calculations; a surprising figure given the compliance risks this entails.

Looking ahead, lenders indicated strong demand for improvements that would reduce errors and improve efficiency. The most desired enhancements included more accurate and reliable calculation software (24%), improved reporting and audit readiness (21%), better system integration across CRM, DMS, and LOS platforms (20%), and easier real-time monitoring for compliance violations (20%). Taken together, these findings reveal a sector seeking not only greater accuracy but also simpler, more seamless tools to manage compliance obligations and loan complexities without sacrificing operational speed.

“This survey shines a light on just how much effort lenders continue to put into getting calculations and disclosures right,” said Tim Yalich, Vice President of Business Development at Carleton. “When confidence in systems is low and errors remain frequent, it signals a broader industry problem — one that demands better integration, automation, and proactive compliance monitoring.”

About Carleton, Inc. 

Carleton is the country’s leading provider of financial calculation software, loan origination compliance support, and document generation software. With over 55 years of experience, our ongoing expertise and industry knowledge reaffirms why Carleton is a trusted partner. Founded in conjunction with the Truth In Lending Act, Carleton provides expert compliance support with continuous accuracy in all our calculations and disclosures at a state and federal level. To learn more about Carleton’s lending solutions, contact our sales team at sales@carletoninc.com or 574-243-6040 option #3.

Every year, Cherokee Media Group organizes the Special Finance 175 by SubPrime Auto Finance News, which acknowledges the finance companies, service and technology providers, and other organizations that continue to flourish in the auto finance industry.

This year, Carleton was once again distinguished on this list as being among ‘the most influential companies’ serving the subprime auto finance industry.

In this April issue of the magazine, Nick Zulovich, senior editor at Cherokee Media Group, explains further saying, “In summary, this feature is meant to reiterate the ‘good work’ that’s being completed […].” Nick continued, “To the companies included, let this issue be a salute to each of you, your management teams, your representatives in the field and your support systems that go well beyond brick-and-mortar buildings and communications infrastructure.”

“We are honored to be included in this year’s Special Finance 175 list again and appreciate the recognition of our team’s dedication to being our customers’ trusted partner,” says Matt Ruszkowski, Carleton President and COO.  Matt added, “Our team remains committed to providing innovative and compliant financial solutions that empower our customers to achieve their goals. Personally, I am proud of what we have accomplished together and excited for the future as we continue to make a positive impact in the auto finance industry.”

 

View April Issue of Auto Finance News

 

About Carleton, Inc.:

Carleton is the country’s leading provider of financial calculation software, loan origination compliance support, and document generation software. With over 55 years of experience, our ongoing expertise and industry knowledge reaffirms why Carleton is a trusted partner. Founded in conjunction with the Truth In Lending Act, Carleton provides expert compliance support with continuous accuracy in all our calculations and disclosures at a state and federal level. To learn more about Carleton’s lending solutions, contact our sales team at sales@carletoninc.com or 574-243-6040 option #3.