3 Best Loan Servicing Software with Buyers Guide

Calyx Point

Catering to Lenders Brokers Mortgage bankers Community banks Credit unions, and nonprofits Electronic document management Reliable and Affordable software that Streamlines Integrates & Optimizes all phases of the loan process Designed to maximize profitability by enabling more loans to close quickly

Mortgage Automator

Private lenders, hard money lenders of all sizes Individual/family funds Administrators Mutual fund trusts Private equity funds Most advanced end-to-end Perfect for residential & commercial lending Auto-generates custom documents Compliance reports Improve communication with borrower and investor portals. 

TValue

Cloud-based amortization solution that helps businesses perform what-if calculations, track loan details, determine balance amounts, create quotes, proposals and contracts via Salesforce integration. Amortization solution that helps businesses manage loan and lease structuring, tracking loan details, creating quotes and more.

Loan Servicing Software

Loan Servicing Software is a specialized solution to assist lenders in automating post-disbursement operations like collections, collateral tracking, and amortization. The software also assists in managing client requests, information, and queries via a customer portal. Many such tools are available as a module or as an integrated part of loan management and origination software.

Advantages of Loan Servicing Software

Increases revenue: Loan servicing solutions helps in automating payment tracking and collections that directly impacts revenue. The software notifies loan services about outstanding payments or due dates and facilitates follow-ups, online payments, and offline collections. The efficiency which has gained assists to decrease delinquency which in turn looses revenue.

Ensure accuracy: Ensuring accuracy in calculating repayment, interest, and the principal amount is necessary for lenders. The software ensures accuracy by automating the complex calculation involved in identifying the exact amounts.

Decrease in turnaround time: The solution assists to decrease process turnaround time by automating loan servicing tasks that take up a bit of time when done manually. Some of these tasks are posting late payments, producing and sending notices of default, and calculating all the fees and penalties.

Features of Loan Servicing Software

Amortization: Preparing amortization schedules based on factors like loan balance, payment frequency, compounding frequency and interest rate.

Collections management: Scheduling and automating payment collections. Collecting payments online or managing payments coming via cash collection outlets.

Borrower management: Managing information about borrowers, guarantors, and co-borrowers via a customer portal. Sharing record financial information, payment alerts, and managing customer queries or requests.

Collateral tracking: Tracking collaterals and supporting documents across lines of credit. Segmenting collaterals into active or inactive based on extensive reports.

Price of Loan Servicing Software

Most products in the market are priced on per user, per month basis and can be divided into three pricing tiers based on their starting price. A premium product is priced higher and has additional features like loan origination and credit bureau integration.

Points to Ponder while Buying Loan Servicing Software

Conduct requires assessment: The solution will have users with diverse requirements hailing from various  departments and hierarchy levels. A user from the finance department will utilize the solution for a varied purpose than a collections agent. So, it will be advantageous to assess the requirements of all users, or of the key stakeholders, and assist in selecting a solution that caters to a majority of the needs.

Check for third-party integration: A solution which supports third-party integration would be a plus if the business utilizes specialized tools for loan origination or for various loan types like mortgage or commercial loans. Integrating the loan servicing software with the tools would offer leverage data in these systems, thus decreasing data duplication.

Loan Servicing Software Trends

ML for accurate loss mitigation: Machine learning (ML) can  assist lenders make accurate loss mitigation decisions via automation. The decisions may include approving  or rejecting loan modifications, repayment plans and forbearance agreements.

ICR for servicing data extraction: Intelligent character recognition (ICR) can provide for the extraction of useful information from loan documents. The technology can identify the final version of loan documents from a loan package, use it to automate the servicing workflow and extract relevant data from the available documents.

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