best-practices-for-effective-loan-servicing
Best Practices for Effective Loan Servicing
As the CEO of Fundingo, I’ve seen firsthand the importance of effective loan servicing. When done well, it can help lenders build strong relationships with their borrowers, reduce delinquencies, and improve profitability.
Here are a few best practices that I’ve learned over the years:
- Communicate regularly with your borrowers. Keep them informed about their loan status, payment due dates, and any changes to their account. This will help them stay on top of their payments and avoid surprises.
- Be flexible and understanding. Things happen, and sometimes borrowers may fall behind on their payments. When this happens, be willing to work with them to find a solution. This could include extending their payment due date, reducing their interest rate, or setting up a payment plan.
- Use technology to your advantage. There are a number of software programs that can help you automate your loan servicing tasks. This can free up your time to focus on other things, such as building relationships with your borrowers.
- Outsource to a third-party servicer. If you don’t have the time or resources to manage your loan servicing in-house, you can outsource to a third-party servicer. This can be a good option for small lenders or lenders who are just getting started.
By following these best practices, you can improve your loan servicing operation and build stronger relationships with your borrowers.
To learn more about effective loan servicing, I encourage you to schedule a demo with Fundingo. Our team of experts can show you how our software can help you streamline your loan servicing process and improve your bottom line.
Call us toll-free at (877) 227-7271 or visit Fundingo.com to learn more.