RC_LA_CM_200.5 Lockbox Check Processing

Lockbox check processing remains an important part of mortgage servicing, allowing servicers to efficiently manage large volumes of mailed payments. In a lockbox arrangement, borrowers send checks to a designated post office box, where a lockbox provider—such as a third-party vendor, affiliated bank, or internal team—collects, scans, and deposits the payments.

Although more borrowers now pay online or through mobile platforms, many—particularly in legacy portfolios—still rely on paper checks. As a result, efficient lockbox processing continues to play a key role in reducing float, minimizing posting delays, and ensuring accurate payment application.

Lockbox Check Processing introduces the main lockbox models and providers and explains how servicers choose the right option for their operations. The course then examines the two primary types of lockbox transactions—retail and wholesale—and outlines the typical steps involved in receiving and processing payments. Finally, it looks at how servicers evaluate lockbox performance through periodic studies focused on float time, processing accuracy, and service quality.

This is a single-family/residential course.

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