Be sure to engage with your members online by using #ICUDay on Facebook and Twitter!
Happy International Credit Union Day (ICU)! For more than a century, credit unions have provided financial services to their members. ICU has been celebrated on the third Thursday of every October since 1948 and is dedicated to recognizing and reflecting upon the history of the credit union movement, promoting credit union achievements and honoring credit union professionals who have dedicated their lives to the movement.
Be sure to engage with your members online by using #ICUDay on Facebook and Twitter!
Each month, stacks of mail stamped “return to sender” by the United States Postal Service (USPS) are sent back to the company or mailing organization and shoved into a forgotten corner. With an estimated 155 billion processed mail pieces annually, over 6.6 billion are identified as undeliverable as addressed (UAA) by the USPS. Despite this statistic, return mail is not often seen as a problem that impacts the bottom line.
While the entire business world is affected by return mail in some capacity, insurance and healthcare are second in line behind the finance industry in combined return mail volume. Pitney Bowes conducted a study that determined insurance and healthcare companies account for 20% of all return mail, or over 300 million pieces per year. That’s one fifth of the whole return mail pie! For Insurers, returned mail must then be securely disposed of because it contains sensitive information.
One leading driver impacting the amount of return mail is the lack of control over the address data when, for example, the data comes from employers or government agencies. This can be caused by the following:
THE NEGATIVE CONSEQUENCES OF A BAD ADDRESS
While exact costs vary by application and product line, each piece of return mail costs the sender $3-$5 in operational costs alone. One bad address means wasted time and money, as well as a damaged reputation. It goes far beyond the cost of postage, envelopes and re-sending documents— increased labor costs, reduced cash flow, and delayed payments all impair policy holder relationships. It also raises the risk of noncompliance, and adds other unseen problems throughout an entire organization that cut into operational efficiencies and margins:
1. Double Production and Mailing Costs
Consider the entire cost of the original mail piece. Because the returned mail piece was not delivered as intended, the original costs of processing and mailing have been lost. Once returned by the USPS, the entire mailing process must begin again with composition, printing, and insertion into an envelope, with the potential of being sent at non-discounted postage rates, because of the volume and density of the regenerated mail. If the return mail item contains a check, an organization can experience up to a $25/piece cost because they must cancel, re-authorize and re-issue the check.
2. USPS Fines for Return Mail
By USPS mandate, organizations claiming discounts and Standard Mail™ must update their First-Class Mail with customer move information within 95 days prior to the mailing. If an organization’s mailings do not reflect current customer addresses, the USPS can fine the company. Furthermore, as explained in a 2014 OIG report about UAA mail, the USPS has a policy that says if a mailer fails to meet a 70 percent address accuracy threshold as part of the move update, a 7-cent-per-piece surcharge is assessed on the portion of the mail that exceeds the 30 percent tolerance.
3. Collateral Damage
Undeliverable invoices that are returned interrupt cash flow—the invoices that never reach the policy holder are simply not paid and in default. The billing organization then adds late fees with the possibility of a policy cancellation, which fuels policy holder dissatisfaction and increased call center activity from inbound complaint calls. The costs incurred through CSR support and additional incentives to attempt to salvage a policy holder’s business loyalty are difficult to quantify, but do take a major toll on the bottom line. Once your policy holders are dissatisfied, it is very hard to change their attitude.
4. Compliance Risks Become Greater
The longer an organization sends UAA mail, the greater the risk of noncompliance becomes. Attorney fees, time and labor spent in tracking down the policy holder’s transactional document history and settlement cash are all factors to strongly consider when looking at the bottom line. Additionally the Red Flags rule of the Fair and Accurate Credit Transactions Act (FACTA) spells out compliance requirements associated with change-of-address fraud.
5. Data Breaches
Thieves and scammers are well aware that, on average, mail takes 45 days to be returned. Taking advantage of an organization’s inability to detect a bad address over that length of time, they will continue to use personal data and mail offers still being sent to an old address. By not tackling the problem of undeliverable addresses immediately, an organization may be keeping the door open for data breaches that will harm the policy holder, as well as their own brand reputation.
Return mail is often overlooked and requires an organization’s full attention by partnering with a secure, trusted and known address management vendor. With nearly one in every nine Americans changing their addresses every year, insurance organizations are faced with a continuing need to update policy address lists. They can either continually correct the problem after each mailing, or they can do it before a mailing is prepared, thereby saving time and money, satisfying compliance standards and strengthening policy holder relationships.
To learn more about address management and partnering with Lanvera, contact our team at firstname.lastname@example.org.
Auto loan servicers are well aware that delinquencies in subprime auto loans have been increasing this year. According to Fitch Ratings, auto loan delinquencies of at least 60 days for subprime loans were up 13% month over month for July of this year (this rate is 17% higher from the same period a year ago). Additionally, July 2016 saw 21% more prime auto loan delinquencies than it did July 2015.
"Increased losses are emanating from weaker collateral pools in the 2013-2015 transactions, which have weaker credit quality including lower FICO scores, higher amounts of extended term loans (over 60 months) and higher LTVs [loan to value ratios]," wrote a Fitch Ratings Analyst.
Add the number of increasing delinquent auto loans to the cost of ever-changing regulatory standards and operational expenses, and it's no wonder auto loan servicers are concerned about their profit margins. However, there are ways to offset these costs through carefully placed and delivered messaging on all borrower-facing communications. Here are some small changes you can implement that can make a big impact:
1. Add color to your documents. We don't just mean a colored logo! A well-placed call-to-action in bright colors can do wonders in getting your borrowers' attention and influencing them to make their auto loan payments a top priority.
A good color scheme will have a significant impact on your digital and print document marketing response rates. This is proven to be true by a recent study conducted by the secretariat of the Seoul International Color Expo, which determined that 92.6% of those surveyed stressed the importance of visuals when purchasing products and 84.7% believe that color accounts for more than half of the various factors important to consumers when choosing which products they purchase. If you want to effectively engage with your borrowers, make sure your documents are in full color.
2. Go digital. Create a unique and memorable borrower experience by providing applications that allow for easy online and mobile payments, as well as offering opt-in push notifications and SMS alerts. According to Creditcards.com, 19% of Americans use online bill pay, and 3% pay by text message. As time marches on, these numbers will only go up! Offering these services gives borrowers multiple ways to engage and make payments.
3. Utilize dynamic messaging. Dynamic Messaging allows you to present strategic messaging to all borrowers or a specific target group and use consumer-facing marketing space by targeting borrowers with products and services that best fit their needs. There are many ways to incorporate dynamic communications on specific customer criteria, including account balance, zip code, gender, or marital status, to name a few. You don’t have to reinvent the wheel in compiling data because you already have it. Why not use it to increase your bottom line?
4. Capitalize on affiliate marketing. Form partnerships with outside businesses to provide advertising space right inside your transactional documents. This is an appealing opportunity to prospective advertisers because personalized borrower communications tend to have much higher open, view and read rates than most mail and emails.
Wrapping it Up
Borrower-facing documents are the perfect delivery method for your auto loan portfolio initiatives. By adding color, going digital, utilizing dynamic messaging, and capitalizing on affiliate marketing, you will experience overall profit margin improvements.
Interested in learning more about how Lanvera's solutions can help you net more profit per loan? Click here to contact us today!
In 2014, ninety percent of companies said that outsourcing is an important part of their overall business strategy, according to the author of The Outsourcing Revolution, Michael Corbett. When the right document services provider is chosen as an outsourcing partner, a company can benefit from improved efficiency, reduced costs and streamlined operations, allowing them to focus on their core competencies. Outsourcing document production and delivery to a vendor that does not just duplicate current efforts, but instead understands the importance of process improvements and staying ahead of the technological curve, is vital to an organization’s success.
Click here to access our latest White paper, Successful Document Outsourcing: Pitfalls to Avoid and Questions to Ask in Choosing a Document Services Vendor, and gain insight into the following:
-Vendor Due Diligence and Red Flags
-Cost vs. Price
-Pitfalls with In-house Solutions
-Steps to Outsourcing Success
The invoices, notices, statements and other business-critical documents your organization sends represent not only a substantial allocation of funds, but also a key vehicle for communicating with your customers, and thus one of the most critical components of your business. That said, these documents should not be overlooked as a simple operational formality.
There are four important facts every executive should know about customer documents and why they are one of the most important elements of any business:
1. Between 50-70% of total indirect spend in the financial services industry is on I.T. and technology infrastructure. Part of this percentage includes the equipment, software and maintenance costs necessary for document processing and production, as well as costs needed to ensure compliance with changing regulations, data security and management and overall operational improvements. Having the infrastructure necessary to keep up with demands is essential, but it is costly. Additionally, expenses tend to be on the higher end of the overall percentage if all production operations are kept in-house.
2. A decline in branch visits and increase in digital and mobile banking has made business-critical documents a major contributor to the customer experience. Last year saw the highest level of bank and credit union branch closures in U.S. history, according to FDIC data. This solidifies the fact that financial institutions must improve the customer experience in other ways to account for this drop in face-to-face interaction. Customer documents, both print and electronic, are more important than ever for enhancing the customer experience and driving behavior.
Here are ways you can use transactional documents to enhance the customer experience:
-Offer user-friendly eStatement hosting on your Home Banking
-Utilize mobile applications that provide capabilities such as opening a new account, fund transfers and direct check deposit
-Print documents that are designed and optimized to be easily understood, personalized and fully branded
3. Documents can serve as a Powerful Marketing Tool. Given the drop in branch visits, both print and electronic customer documents can supplement for the loss of face-to-face interaction and serve as an essential and profitable marketing tool. Access to transactional data gives the financial industry the unique ability to personalize documents and provide their customers with timely, applicable marketing messages through transpromo marketing in the form of personalized affiliate ads, as well as cross selling and upselling.
4. Document outsourcing is the best way to simplify processes, reduce costs and manage risk while increasing value. While the need to reduce costs and conserve resources is a prominent one, it’s important to remember to cut the RIGHT costs and allocate your expenses to elements that will work tangent to your business goals while increasing overall efficiency. Document outsourcing is an excellent way to mitigate some of the IT spend while continuing to achieve the technological advancements that customers require.
A great document outsourcing partner will serve as a single-source extension of your business, offering a comprehensive combination of equipment, security, delivery vehicles and software. In addition to controlling operational costs and reducing capital expenditure needs, outsourcing can provide added value through enhanced marketing opportunities and assured quality control, which ultimately allows you to devote your time to your core competency.
For a free consultation, click here.
Hurricane Hermine made landfall as a Category 1 hurricane in Florida early Friday, September 2, 2016. According to NBC News, more than 253,000 Florida utility customers were without power by 10 a.m. ET.
Whether or not your business was affected by this recent storm, it should give you reason to ensure you have a solid disaster recovery (DR) plan. Be it hurricane, tornado, flood, blizzard, or any other unforeseen disaster, it’s crucial for your company to take steps to minimize any disruption in communications with employees and customers.
The Disaster Recovery Journal estimates that as many as 80% of all U.S. companies don't have an effective DR plan. This does not bode well for the majority of American business’ systems and data, and ultimately, their future survival.
Here are three disaster recovery essentials to keep you in business by safeguarding your customer data and communications- and confirming that your business services vendors do the same- during future emergencies:
1. BUSINESS CONTINUITY MANAGEMENT
Business Continuity Management (BCM) is defined as a management process that identifies potential threats to an organization and the impacts to business operations those threats might cause. BCM provides a framework for building organizational resilience with the capability of an effective response that safeguards the interests of its key stakeholders, reputation, brand, and value-creating activities. Although this term is used interchangeably with DR, business continuity addresses more comprehensive planning that focuses on long term or chronic challenges to organizational success. Potential business continuity problems may include the illness or departure of key team members, supply chain breakdowns, catastrophic failures or critical malware infections.
Should a natural disaster or unexpected power outage occur, data must be accessible from a remote backup facility. Data must be comprehensively backed up at a secure location that features total redundancy of all online systems, databases, communications, power, form inventories, and print and mail facilities.
2. DATA SECURITY AND ARCHIVING
Data security, of course, is extremely important at all times. According to the Disaster Recovery Preparedness Council’s Annual Report, 60% of companies that experience mass data loss will shut down within six months of a disaster.
As business-critical data continues to grow at an exponential rate, and universal regulations such as HIPAA and the Patriot Act compel organizations to store data longer, archiving is an essential element to a DR plan. For customer data and business-critical communications such as statements, letters and notices, it is recommended that ePresentment is utilized.
3. MULTI-CHANNEL COMMUNICATION
In the event of a natural disaster, alternate forms of communication are crucial. When Hurricane Katrina hit New Orleans in 2005, USPS mail service was suspended for weeks across several states. It is important for businesses to reach their customers and deliver business-critical communications, no matter the circumstances. It is recommended that businesses not only incorporate messages on their own websites and ePresentment into their DR plan, but also email, SMS and social media.
·Email: Sending emails during emergency situations as a valid method of communication. Email servers are located globally, and it’s unlikely they will all be dead at the same time. But where do you get Internet access if cell phone service is dead? Oftentimes, WiFi service will still be up and running, since the cables used for hard wired Internet operate on different networks than cell phones. For most WiFi, you don’t even need to be in the building to access the service.
·Text: Text messages require far less bandwidth than phone calls, and even when the ominous “all circuits are busy” recording comes on, texts will still work as they operate on a parallel network to cell phones.
·Social Media: Social media is similar to email in that it is hosted on a network of global servers, providing redundancy and fault tolerance. Because your customers are all unique in their social media preferences, the more social media outlets you communicate on, the better.
When it comes to your business and natural disasters, it’s better to be safe than sorry. Ensuring your business, as well as your vendors, have strong DR plans will give you and your customers peace of mind in knowing you have them covered.
Want to learn more about disaster recovery? Click here to access Cisco’s Disaster Recovery Best Practices.
Imagine you walk into the office one day and are greeted with chaos- coworkers running around frantically, the phones ringing incessantly. You ask what all the commotion is about, and a colleague turns to you and says: “Our document services provider has sent two members’ personal statements to our ENTIRE LIST OF CUSTOMERS!” As you take a moment to let that sink in, you call your vendor and demand they get to the bottom of this irreversible mistake. The vendor representative on the other end of the phone apologizes profusely, promises LifeLock for the two affected members and swears that this mistake will never happen again.
Fast forward a couple of months. You experience déjà vu as you enter a scene much like the one you did not too long ago. Again, you ask what all the commotion is about, and a colleague turns to you and says: “Our document services provider has sent a business’ statement to OUR ENTIRE LIST OF CUSTOMERS!”
Unfortunately, we have heard this exact horror story, along with many others, about other document services providers’ lack of quality control and standard security checkpoints, resulting in unforeseen costs incurred through data breaches and customer dissatisfaction.
Outsourcing document production and delivery should allow your business to reach the correct customer at the right time, achieve cost savings and streamline processes - all while managing risk.
If you are looking to change document services providers, beware of the fact that many vendors may tell you they offer the whole package, but then end up falling short on their promises after implementation. Here are five questions to ask in the vetting processes that will help you uncover the truth in a vendor's offerings and capabilities:
1. What security certifications/qualifications do they uphold? In order to avoid data breaches, document services providers should be SSAE 16 and SOC II, Type 2 Certified. For the healthcare industry, HIPAA Compliance is also required.
2. Do they offer a comprehensive solution? Utilizing a single partner for the design, composition and multi-channel delivery of all your documents and communications benefits your organization by ensuring consistency throughout all document channels and formats. A comprehensive, single-vendor solution can help you save time and money by increasing eAdoption rates, reducing call center costs, offering solutions to identify new revenue opportunities, and providing you with large volume discounts.
3. Do they have high standards of quality control? Quality control is of utmost importance in the design, processing and delivery of business-critical documents. A vendor that has multiple checkpoints throughout the document lifecycle including mail scanning, 2D barcodes on each page of every document and unique Intelligent Mail Barcodes (IMB) will ensure each document is sent to the correct recipient at the right time.
4. What kind of support will they provide? The most successful document services providers are consultative in their approach and identify ways to solve complex business problems. Look for a vendor that employs only PMP Certified project managers, as well as seasoned client services managers who can lend industry expertise and best practices.
5. Do they continually invest in the most updated software and equipment? A good document services vendor will not only have the latest print equipment, but will also heavily invest in ongoing technological applications in an effort to strategically align with your business objectives.
Choose the right strategic partner, and you have found the keys to success in business-critical communications!
Interested in learning how Lanvera can help you achieve best-in-class customer communications that streamline processes, increase your bottom line and mitigate risk? Click here to contact us.
In the United States, the beginning of the school year signals a two-and-a-half month sprint to the beginning of the holiday season. Over these next couple of months, you and your team will most likely be reviewing annual budgets, identifying strategic goals and building process improvements.
This time of year should also shift focus to your marketing plan and identifying ways to effectively reach your customer segments during the holidays. According to the National Retail Federation, Americans spent $626.1 billion on holiday gifts in 2015. This solidifies the importance of using your business-critical documents to cross-sell and upsell your services, as well as tap into affiliate advertising. Your customers receive their statements, invoices and bills from you on a regular basis (in most cases, monthly) and using these documents to market to your customer base is an easy way to drive customer action.
Cross-Sell/Upsell: Parents of a young child who receive monetary gifts for Christmas could be persuaded to open a 529 Plan account for college funds. Customers wanting to purchase a car for a child or spouse will be searching for the best auto loan rates. Do you see where we are going with this? Customers will be on the lookout for products and services that best suit their needs and wants. This is a great opportunity for you to reach your customer segments with personalized, dynamic messaging that will drive them to contact you and request additional services.
Affiliate Advertising: The holiday season is a goldmine for B2C businesses. Did you know those businesses are willing to pay you for advertising space in your business-critical documents? Tapping into affiliate advertising will drive customer behavior and put more money in your pocket. It’s a win-win!
How to Cross-Sell/Upsell and Utilize Affiliate Advertising on Customer Documents
Historically, businesses have utilized transpromo marketing and statement stuffers to send blanket messages to their entire customer base, but today’s capabilities will reap benefits and results far greater than these generalized marketing messages of the past.
By outsourcing to the right document services partner, you can help improve your document marketing by making it:
1. Personalized: Face-to -face interaction continues to decline as customers are now able to do everything from transferring money to opening new accounts remotely via mobile apps and home banking. Statements, letters and notices are becoming a primary platform for businesses to engage with and cross-sell/upsell to their customers, but it is important that those messages be personalized and targeted to the individual rather than your entire customer base.
A good document outsourcing partner will implement business rules to target specific customers with personalized marketing messages, increasing the quality of marketing content and driving customer engagement.
2. Dynamic: The key to dynamic messaging is having the ability to change and update document marketing content at your own discretion and designate which customer segments will receive them. With this capability, you can create and change dynamic marketing messages when necessary and at no additional cost.
3. Multi-Channel: In order to effectively market to your customer segments, multi-channel delivery is of utmost importance. Digital delivery such as SMS, email and ePresentment allows your customers to view their statements, notices, etc. in a timely manner, meaning your marketing messages are being seen more quickly than traditional mail. Additionally, digital delivery gives you the option to enable clickable advertisements that drive immediate customer interaction.
When you couple digital delivery with print and mail, the marketing opportunities are limitless. You can either implement the same messaging to one customer segment across all document delivery platforms, or you can vary messaging so each customer sees different communications on their electronic documents versus what they see on their print documents. This can especially come in handy when you come across customers who fall under multiple segments.
Get back to school and have some fun with your document marketing so you can put more money in your pocket while making your customers happy! Contact us today for a comprehensive consultation on how you can maximize the potential of your business-critical documents.
Michael Phelps is nothing short of a household name. As the most decorated Olympian ever (he raked in eight gold medals in his first games alone), he has yet again surpassed the public’s expectations by qualifying for his 5th round of Olympic Games hosted in Rio, Brazil over the next two weeks. Although Phelps is not a corporation, he is certainly a brand. His tenacity, hard work and perseverance yield many lessons the business world can glean from. That said, here are three ways Michael Phelps can teach you to strengthen your brand through business-critical communications:
Side Note: Speaking of #PhelpsFace memes, here is one that was recently posted by the CUNA Advocacy Group on Twitter:
The Consumer Financial Protection Bureau (CFPB) recently published a 900-page final rule on mortgage servicing. The final rule, otherwise known as “Amendments to the 2013 Mortgage Rules under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z),” has raised concerns in the industry for “unintended consequences.” For example, the National Association of Federal Credit Union (NAFCU) is already pointing out flaws in the final rule, according to HousingWire. To see what NAFCU’s Director of Regulatory Affairs said about the new regulatory changes, click here.
According to the CFPB’s press release issued August 4, 2016, the rule establishes new protections for consumers, including:
Requiring servicers to provide certain borrowers with foreclosure protections more than once over the life of the loan:
Under the CFPB’s existing rules, a mortgage servicer must give borrowers certain foreclosure protections, including the right to be evaluated under the CFPB’s requirements for options to avoid foreclosure, only once during the life of the loan. Today’s final rule will require that servicers give those protections again for borrowers who have brought their loans current at any time since submitting the prior complete loss mitigation application.
This change will be particularly helpful for borrowers who obtain a permanent loan modification and later suffer an unrelated hardship, such as the loss of a job or the death of a family member, that could otherwise cause them to face foreclosure, the CFPB stated.
Expanding consumer protections to surviving family members and other homeowners:
If a borrower dies, existing CFPB rules require that servicers have policies and procedures in place to promptly identify and communicate with family members, heirs, or other parties, known as successors in interest, who have a legal interest in the home. Today’s final rule establishes a broad definition of successor in interest that generally includes persons who receive property upon the death of a relative or joint tenant; as a result of a divorce or legal separation; through certain trusts; or from a spouse or parent.
The final rule ensures that those confirmed as successors in interest will generally receive the same protections under the CFPB’s mortgage servicing rules as the original borrower.
Providing more information to borrowers in bankruptcy:
Under the CFPB’s existing mortgage rules, servicers do not have to provide periodic statements or early intervention loss mitigation information to borrowers in bankruptcy. Today’s final rule generally requires, subject to certain exemptions, that servicers provide those borrowers periodic statements with specific information tailored for bankruptcy, as well as a modified written early intervention notice to let those borrowers know about loss mitigation options.
Servicers also currently do not have to provide early intervention loss mitigation information to borrowers who have told the servicer to stop contacting them under the Fair Debt Collection Practices Act. Today’s final rule generally requires servicers to provide modified written early intervention notices to let those borrowers also know about loss mitigation options.
Requiring servicers to notify borrowers when loss mitigation applications are complete:
Whether a borrower is entitled to key foreclosure protections depends in part on the date a borrower completes a loss mitigation application. If consumers do not know the status of their application, they cannot know the status of those foreclosure protections. Today’s final rule requires servicers to notify borrowers promptly and in writing that the application is complete, so that borrowers know the status of the application and have more information about their protections.
Protecting struggling borrowers during servicing transfers:
When mortgages are transferred from one servicer to another, borrowers who had applied to the prior servicer for loss mitigation may not know where they stand with the new servicer. Today’s final rule clarifies that generally the new servicer must comply with the loss mitigation requirements within the same timeframes that applied to the transferor servicer, but provides limited extensions to these timeframes under certain circumstances.
If a borrower submits an application shortly before transfer, the new servicer must send an acknowledgment notice within 10 business days of the transfer date. If the borrower’s application was complete prior to transfer, the new servicer must evaluate it within 30 days of the transfer date. If the new servicer needs more information to evaluate the application, the borrower would retain some foreclosure protections in the meantime. If the borrower submits an appeal, the new servicer has 30 days to make a determination on the appeal.
Clarifying servicers’ obligations to avoid dual-tracking and prevent wrongful foreclosures:
The CFPB’s existing rules prohibit servicers from taking certain actions in foreclosure once they receive a complete loss mitigation application from a borrower more than 37 days prior to a scheduled sale. However, in some cases, borrowers are not receiving this protection, and servicers’ foreclosure counsel may not be taking adequate steps to delay foreclosure proceedings or sales.
The CFPB’s new rule clarifies that, if a servicer has already made the first foreclosure notice or filing and receives a timely complete application, servicers and their foreclosure counsel must not move for a foreclosure judgment or order of sale, or conduct a foreclosure sale, even if a third party conducts the sale proceedings, unless the borrower’s loss mitigation application is properly denied, withdrawn, or the borrower fails to perform on a loss mitigation agreement.
The clarifications will aid servicers in complying with, and assist courts in applying, the dual-tracking prohibitions in foreclosure proceedings to prevent wrongful foreclosures.
Clarifying when a borrower becomes delinquent:
Several of the consumer protections under the CFPB’s existing rules depend upon how long a consumer has been delinquent on a mortgage. Today’s final rule clarifies that delinquency, for purposes of the servicing rules, begins on the date a borrower’s periodic payment becomes due and unpaid. When a borrower misses a periodic payment but later makes it up, if the servicer applies that payment to the oldest outstanding periodic payment, the date the borrower’s delinquency began advances.
The final rule also allows servicers the discretion, under certain circumstances, to consider a borrower as having made a timely payment even if the borrower’s payment falls short of a full periodic payment.
Mortgage servicers have been and will continue to struggle with loan margins as the regulatory environment continues to iron itself out. Should you have any questions on how to improve loan margins while satisfying compliance, click here to contact Lanvera, the industry’s leading transactional document services provider.