Posted by Alison Arthur on 21 Aug 2018
Obtaining a mortgage can be one of the most significant financial decisions that people make in their lives. And securing these loans often entails a painstaking process that involves lengthy applications, credit score checks, and real estate appraisals. Once homeowners secure a mortgage, on-time loan repayment is critical. Account delinquencies and missed payments can result in serious financial consequences, including costly foreclosures and damaged credit scores.
Recent data reports that 65% of American homeowners have a mortgage, with total mortgage debt estimated at $9.9 trillion. Given the scope of these numbers, it’s safe to say that many, many Americans are responsible for making sure their mortgage payments are submitted in a timely manner. This is where a sophisticated and flexible electronic bill presentment and payment (EBPP) solution can streamline mortgage payments for both homeowners and mortgage servicers alike.
How can a flexible EBPP solution streamline mortgage payments? Here are three ways.
1. Send alerts and notifications to the palms of your customers’ hands.
An EBPP solution can send your customers alerts and notifications about their mortgage accounts via text messaging and email. For example, a notification can be sent when the bill is ready to pay, and an alert can follow if your customer is close to their due date. Giving them options for how they want to receive account communications can increase the likelihood of on-time mortgage payments.
2. Accept mortgage payments anytime, on any device.
Mortgage holders will have different preferences for how they want to pay their bills. Some might prefer to send a check in the mail, while others will want to make payments on their mobile devices. Advanced EBPP solutions can even facilitate mortgage payments on emerging channels, like messaging apps and through intelligent personal assistants like Amazon Alexa. Payment preferences will evolve as new channels emerge, making a flexible EBPP solution critical for keeping up with the changing needs of your mortgage customers.
3. Provide options for versatile payment schedules.
Punctual mortgage payments are critical to the financial health of your customers. An EBPP solution can provide a variety of options to make payments on a schedule that best fits their individual needs. For example, payments can be made automatically with a set amount on a specific date each month. Or customers can opt for one-time payments that let them control the date and amount they pay. Your company can even provide customers the option of a biweekly payment schedule (through recurring payments) that might allow them to pay their loans off even faster.
The Bottom Line: Timely bill payments are critical for healthy mortgages. Give your mortgage customers access to an EBPP solution that sends proactive account communications, empowers them to make payments across a variety of channels, and gives them options for how they schedule their payments.