What Are the Differences between Current Loan Servicing Software and Older Applications?

Simple interest loan software operates using US Rule-Simple Interest. Rate fluctuations are tracked on a daily basis for the entire portfolio, while determining monthly interest.

Lending businesses that operate with simple interest loans have a lot to benefit from implementing a loan servicing software solution.

The latest approach of loan servicing software creators resulted in a single-system to help lending organizations enjoy the full benefits that an integrated solution can offer:
• Integrated, scalable loan management support to address all consumer and mortgage loans, reduce operating expenses, deliver improved customer experience, and eliminate processing redundancies.
• Account information stored in a central database, allowing instant loan data sharing both internally and with the borrower.
• 24×7 accessibility supporting servicing operations regardless of the continent or time zone, to offer 24-hour customer care.
• Integrated default management to allow effective risk management across the whole lending relationship.
• Client-defined workflow automation allowing process specification depending on the business needs, configuration of system views and processes used frequently, in order to offer superior management control and reduce training time, and allowing the creation of an accurately documented audit trail.
• Web services integrating ancillary applications and systems and making them work together, as one system, preventing delays and lowering data management costs.
• Best practices and various measurement strategies used by the loan servicing software team to migrate diverse portfolios in an efficient and effective manner, so that you do not experience any interruption in the loan providing activity.

What Is ACH Loan Servicing Software?

Even while using complex loan servicing software, businesses in the commercial finance industry know that servicing loans is a tedious and expensive process. It does not have to be that way.

According to recent studies, collecting one payment costs between $5 and $10 depending on client, loan type and amount. Multiply that amount with a few thousand daily operations and you’ll get a staggering number. The collecting cost associated with each transaction includes printing, postage, staff, equipment maintenance and inflation adjustments.

ACH stands for Automated Clearing House, which is an electronic network for financial transactions used by the Federal Reserve. The system processes immense volumes of debit and credit operations.

ACH loan software is currently the most comprehensive solution on the market. It eliminates time needed for accounting, as well as possible errors. These programs operate using files in the NACHA format (National Automated Clearing House Association), while automatically updating payments to customer accounts.

Thanks to the ACH network, collecting and servicing expenses are greatly reduced, while eliminating much of the hassle associated to loan servicing. Because of automatic updates, operators seldom need to interact with an account after creating it, significantly reducing workload. Due to all of these features, ACH loan servicing software is the most powerful of its type today.

In few words, your new loan servicing software should be designed to meet your unique industry and business needs, should be integrated with other similar products, should be implemented and supported by reputable software producers, and it would be great to have the endorsements of other users.