For two decades, lenders have incrementally modernized but not replaced their legacy, mainframe loan servicing systems, which remain rigid, costly, and architecturally outdated. A new wave of cloud-native, AI-ready platforms is now creating an opportunity for true system replacement, enabling major improvements in servicing, collections, data management, customer engagement, and payments. The research builds a business case for replacing legacy platforms, compares new entrants with established vendors, and outlines modernization strategies tailored to different types of lenders.