For years, mortgage servicers have relied on the same payment methods: paper checks, ACH transfers and manual phone calls. But in a digital-first world, these mortgage processing options are no longer enough. Today’s borrowers expect payment experiences that are fast, flexible and convenient — just like the digital payments they’re making in other parts of their lives. When those expectations aren’t met, the result isn’t just frustration — it’s missed payments, higher servicing costs and unnecessary collection efforts.
The good news? There’s a clear path forward. Expanding your payment channels doesn’t just improve the borrower experience; it directly impacts your bottom line.
Want to learn more? Download our guide, “Streamlining Mortgage Payments: A Guide to Modern Solutions and Borrower Preferences”
Thanks to digital payments, consumers today have more control, more access and more options than ever before. They can pay a utility bill through an app, split a dinner check with a tap and fund a car loan online in minutes. So when their mortgage payment still requires mailing a check or calling during business hours, something doesn’t add up.
This shift in behavior isn’t limited to younger borrowers. While Millennials and Gen Z may be driving mobile-first adoption, even some older homeowners are growing more comfortable with digital tools. What unites these groups is a common expectation: they want payment to be simple, secure and on their terms.
When servicers limit how borrowers can pay, they unintentionally create friction — and friction leads to delays, failed payments and increased delinquencies.
Imagine a borrower who’s juggling bills and gets paid on the last day of the month. They want to make their mortgage payment immediately, but the servicer only accepts ACH payments initiated three days in advance. That borrower might miss the window, incur a late fee or, worse, default.
Or consider the borrower who prefers to pay by phone but keeps unusual hours while working night shifts. If live-agent support ends at 5 p.m., their only option might be to wait — or forget.
These aren’t just hypothetical edge cases. They’re everyday realities for many borrowers. And when borrowers are forced to jump through hoops just to pay, the entire mortgage processing operation suffers.
In short: limited payment channels cost more than you think.
Offering more ways to pay, such as digital payments, does more than add a few fancy, high-tech bells and whistles. It reduces friction all across your collections process.
When borrowers have the freedom to choose how and when they pay, they’re more likely to pay on time. Whether that’s via mobile app, web portal, IVR or debit card, flexibility leads to faster payments and fewer failed transactions.
Let’s take debit cards as one example. Unlike checks or ACH, debit payments process almost instantly. That means funds are verified in real time, reducing the risk of non-sufficient funds and the need for follow-up collection attempts. For borrowers, it provides peace of mind. For servicers, it means fewer delinquencies and less operational drag.
Omni-channel access also opens the door to automation. Recurring payments, text-to-pay links and branded mobile apps allow borrowers to set and forget their payments — while servicers gain predictability and control.
It’s easy to think of payment technology as just another system to integrate. But the right payment strategy drives business value in addition to improving mortgage processing workflows.
Mortgage servicers that expand their payment channels see benefits across key areas:
In a market where every point of margin matters, that’s a competitive edge.
Mortgage servicers are facing real pressure due to rising costs, changing borrower expectations and the need to modernize legacy systems. Expanding your payment channels is a tech upgrade that is also a strategic move to improve collections, reduce overhead and build trust with your borrowers.
Want to dive deeper into borrower preferences, generational trends and the technology powering payment innovation?
Download our latest whitepaper: “Streamlining Mortgage Payments: A Guide to Modern Solutions and Borrower Preferences.”
The future of mortgage processing is flexible, digital and borrower-friendly. And it starts with giving your customers more ways to pay. Contact REPAY today to learn more!