The Best Mortgage Servicing Software Facilitates Superior Customer Service Around Payment Processing
Customer service really begins when the mortgage loan has closed. Borrowers may need assistance understanding the multiple ways to make a payment and what possible payment increases to expect. The best mortgage servicing software can help servicers improve the borrower experience surrounding payment processing.
Payment options. Mortgage servicers should provide several payment options, including online, by phone or mail and in-person. Many borrowers prefer the convenience of making online payments via online portals and web applications. eStatus Connect®, FICS’ borrower-facing web application, gives borrowers online and mobile access to their mortgage loan information, and its Auto Pay feature allows borrowers to make one-time or recurring payments online. Servicers must credit payments to the borrower’s loan account as of the day it is received. Mortgage Servicer® automates the posting of payments through ACH, lockbox or the core banking/credit union system, increasing efficiency. Real-time transaction processing handles exceptions, payment and transaction reversals, adjustments and more.
Fluctuations in monthly mortgage payments. Borrowers who have Adjustable Rate Mortgages need to know when the rate and payment will change. FICS’ Mortgage Servicer® generates an ARM Reset Notice that gives borrowers advance notice of what their payment and rate could change to so they can be prepared for an increased payment.
Escrow payments. Escrow payments may increase each year. Increases in property taxes and hazard insurance rates cause the escrow account to be short each month. Mortgage Servicer® allows borrowers to spread any escrow account shortages over a 12-month or longer period, depending on the size of the shortage.
Mortgage payoff programs. Borrowers may be bombarded by offers for bi-weekly payment programs that are designed to pay off mortgages faster. Companies that offer these biweekly mortgage payment plans typically charge additional fees to handle and deliver the extra payments. Mortgage Servicer® can generate an amortization schedule that tells borrowers how much extra to pay each month to pay off the loan faster. There is no additional cost to increase the monthly payment.
Transfer of servicing. When loans are transferred to a new servicer, the old and new servicer must both send a notice to the borrower. The current servicer must notify borrowers at least 15 days before the effective date of the transfer (i.e., the date the first mortgage payment is due at the new servicer’s address). The new servicer must notify borrowers within 15 days after the effective date of the transfer. Mortgage Servicer® users can meet these requirements by generating predefined but flexible notices.
Loans in Default. If a borrower misses one or more mortgage payments, the loan is in default. The costs of default-related services (e.g., a property inspection to determine whether the property is still occupied and being maintained) and property preservation services (e.g., lawn mowing, landscaping and replacing/repairing broken doors or windows) are charged to the loan account, making it more difficult for the borrower to pay off the loan. Mortgage Servicer’s built-in reminder and late notices inform borrowers of their payment status. Also, Mortgage Servicer’s Early Payment Delinquency program helps servicers identify loans that may require special attention by letting them know if the borrower was delinquent on the first payment or the number of times they were delinquent in their first year. With user-defined criteria, servicers can create a watch list of potential delinquencies, so they can take immediate action when borrowers reach user-defined thresholds. This proactive approach can help increase collections, thereby preventing delinquencies.
The best mortgage servicing software facilitates payment processing for borrowers and servicers alike. Take advantage of leading-edge software like Mortgage Servicer® to improve staff efficiency and provide exceptional customer service to borrowers. Learn more about the benefits of Mortgage Servicer® here.