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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 42 June 2024 F E A T U R E S T O R Y of information is instantaneous, and the messaging platform often confirms the successful sending and receipt. Digital mortgage payment options provide the same instantaneous, verified sending of payments as modern com- munication platforms do for messages. Borrowers know whether the payment was successful right away, and they can receive automated digital confirmation of receipt from their lender in a matter of seconds or minutes. This instantaneous transaction verification serves a dual purpose of im- proving payment traceability and security. First, it removes the risk of lost checks in the mail or delayed postmarks for checks mailed after business hours that could lead to a late payment penalty. Addition- ally, it increases trust between the lender and borrower, as both parties receive con- firmation of payment at the same time. Digital Payments Evolve Lender Operations T he process of moving money is a critical touchpoint between lenders and borrowers, especially when transfer- ring large sums of money for mortgage transactions. Meeting customer satisfaction demands, enabling operational efficiency, as well as increasing security and cash flow, are all critical to the competitive positioning of today's mortgage lenders—which will be essential to success as borrowers become more selective and economic pressures continue to impact collections operations. Self-service payment technologies, which integrate directly with existing lender systems, eliminate the tedium and risk of manual collections and accounting operations. Online payment portals allow borrowers to access account informa- tion and payment histories at any time, effectively expanding the business hours during which payments can be accepted and reducing the manual activity required to accept and track payments. Text payments and IVR are other self-service payment options that provide the same ad- vantages of online portals, with the added benefit of enabling borrowers to submit payments wherever they are without need- ing to access a web browser. Modern payment processing options, which can be easily facilitated through self-service payment modalities, enable lenders to accept payments via debit card, ACH transfers and even digital wallets. Ev- ery borrower has a debit card, which does not need to be replenished in the same way paper checks do, and is automatical- ly replaced by the borrower's financial institution when it expires. ACH transfers can be automated to prevent late payment penalties. Digital wallets enhance the accessibility of debit card payments by enabling borrowers to use cards stored in their digital wallets to make payments on the go, instantly, without even needing to take their debit card out of their physical wallet. These payment processing options provide borrowers with the opportunity to submit payments when and where it is most convenient, as well as through the payment method that best aligns with their budget and assets. On the lender's side, adopting digital technologies to enable payment con- venience directly contributes to more efficient collections. Complex processes contribute to past due payment penalties for borrowers, and mailed paper checks can be delayed or completely lost by mail services. Paper and spreadsheet accounting workflows are prone to human error and can be difficult to trace without intense organization protocols. Automat- ing accounting, by instantly tracking key payment details including time, method and amount, significantly reduces the bur- den of manual labor, eliminates the risk of inaccuracies and speeds the funding of payments. Surviving & Thriving by Evolving Payment Methods T he goal of modernization through adoption of digital payment methods leads lenders and financial institutions to a destination that promises smoother collec- tion and accounting processes, as well as better relationships and communication with borrowers. However, the journey to modernization, and the speed at which it occurs, is paramount to a successful out- come. In addition to the benefits provided to lenders, borrowers can take advantage of a host of new options by using digital payment technology. Financial institutions that do not modernize payment technol- ogy to meet the pace of evolving customer expectations will inevitably find their customers selecting competing lenders for mortgage loans. Automating accounting, by instantly tracking key payment details including time, method, and amount, significantly reduces the burden of manual labor, eliminates the risk of inaccuracies, and speeds the funding of payments.