RC_LA_CM_200.5 Payment Automation
In the past, making and posting monthly mortgage loan payments was a time-consuming process. Each month the borrower had to remember to write a check, put it in a special envelope, add a postage stamp, and mail the envelope in time to meet the all-important due date. The payment would take several days to reach the lender, where it would make its way to the accounts receivable staff for posting to the appropriate accounts.
With widespread use of smart phones, laptops, tablets, and other Internet-connected devices, along with automated/online services for bill paying, borrowers and lenders have faster, cheaper, and more convenient payment methods than ever before.
Payment Automation first describes the methods of making mortgage payments, the channels in which servicers receive mortgage payments, and automated payment solutions used in the industry. It then explains how lockbox services benefit lenders that handle a high volume of payments. Next, prepayment plans that allow mortgagors to accelerate the payoff of their loans are examined. Finally, specific automated payment alternatives are discussed.
This is a single-family/residential course.
Seat time approximately 1 hour.