Loan Servicing Software

Manage Your Loan Servicing Digitally on Cloud and at Scale

 

LendFoundry Loan Servicing Solution (LSS) helps lenders manage loan servicing digitally while offering scalability, security, speed and enhanced customer experience. Our API based design allows onboarding loans from any Loan Origination System and serves as a system of record across multiple loan classes.

You can record and track all loans, manage repayment schedules, track scheduled payments and ad-hoc payments, allocate repayments, and keep a check on delinquencies and closures.


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    Modern Loan Servicing System Overview

    Our loan servicing system offers a range of capabilities including a general ledger and accounting system, data warehousing, loan lifecycle management, multiple fee and charge structures, perfect pay loan modification and management, loan restructuring, and payment schedule monitoring. We also provide various accrual methods such as 30/365 and Actual Actual.

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    Loan Servicing System

    LendFoundry Loan Servicing Solution (LSS) is built on cloud technology and microservices architecture, similar tech stack as used by Netflix and Amazon. The SaaS model minimizes the upfront, startup cost, while the AI-enabled platform identifies priority accounts saving you cost and efforts at every single activity under loan servicing.

    For your customers, it acts as a self-service portal offering a single view of their loans, payments, statements and also facilitates periodic, timely communications. For your support teams, they get everything required at one place and access to dashboards to manage loan portfolios efficiently. For your business, it provides Analytics and AI tools to identify the next best upsell and cross sell opportunities.

    AI-powered Automation + Modular Architecture = Happy Customers + Happy Employees

    Make Loan Servicing a Profit Center 

    01. Tech Benefits

    API for everything
    Facilitates rapid app development and
    ‘Plug & Play’ integration

    Digital readiness
    SaaS platform gives accessibility at your
    ease and on the go

    Future ready technology
    Microservice architecture offers you
    scale and speed to market

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    02. Business Benefits

    Happy customers
    Self-access of information and timely
    Communications about their loan

    New Business
    Identify and close new cross-sell and
    upsell opportunities with AI

    Happy employees
    Single view of customer saves efforts
    in tracking and reviewing loan

    Business Benefits

    03. Operational Benefits

    Easy Configurability
    Quickly configure any product parameter,
    use action and workflows

    Assets Class  Coverage
    Cover multiple asset classes and add new
    product variations

    Stakeholder collaboration
    Tools enabling collaboration
    internally and externally

    Operational Benefits

    Our Features

    LendFoundry LSS or Loan Servicing System provides coverage for multiple asset classes thus enabling tracking various lending products being offered by a lender.

    Loan Onboard

    Loan Onboarding

    • API Integration with LOS/3rd party  origination systems
    • Action Center for summarized info on key KPIs for all loans on boarded
    • Smart search
    • Define Borrower relationships
    Payment process

    Accrual/Payment Processing

    • NACHA/ACH enabled payment processing
    • Automated and configurable handling of ACH Rejects incl. fee application
    • Support for Event triggered actions
    • Non-perfect partial or ad-hoc pay handling flexibility
    • Configurable Payment Hierarchies to align to business events
    Outstanding and Delay

    Outstanding & Delay Management

    • Current/ Total Outstanding segregation into buckets
    • Highlights negative KPIs of loans for early warning
    • Notes & inbox - follow up and tracking
    • Asset Classification
    • Late Payment Handling
    Modification

    Modification and Closure

    • Pre-payment with Discounts/ Pay off computation, application
    • Loan modification - incl. flexi adjustment of tenure or payables with auto generation of payment schedule
    • Payment reversals, back dated payments, waivers for loan closure and settlement
    • Charge off, sell off, deceased, SCRA, forbearance treatments
    Amortization

    Amortization and Transactions

    • Configuration driven Amortization engine-30/360, Actual/Actual, Interest Bearing/ Fixed Payments
    • Automated creation of payment schedule with Flexi first payment date,
    • Schedule level payment tracking
    • Loan Account Transaction Creation
    • Ability to attach additional Accounts to loan for tracking of Escrow etc.
    Borrower Communication

    Borrower Communication

    • Enabling event driven Statement of Account and loan closure document Generation
    • Self-service Borrower portal to view payments, document
    • Upload functionalities, tasks etc.
    • Well integrated mechanism to send mails
    Process Management

    Process Management

    • End to End loan life-cycle management
    • Alerts, Notification and Requests scheduling
    • Flexible workflows for Special scenarios such as charge-off etc.
    • Process to manage scheduled and ad-hoc fees application and payment
    • Document Management
    Add on Module

    Add-On Module Readiness

    • GL System Integration
    • Investor Portal
    • Loan Syndications
    • Collections
    • CRM
    • API/Batch File driven data exchange framework
    Audit and Reporting

    Audit and Reporting

    • Complete event history for each loan
    • Enables all data access through APIs to external audit & reporting systems
    • Built in operational reports with export
    • Bureau Reporting with Metro2
    • Complete transaction log generation and storage for future audit purpose
    Other Setup

    Other Setups

    • User credential and role based access
    • Configurable Maker Checker Actions
    • Multi-Tenant with configurable currency
    • Multi-Product Setup on same instance
    • Rule Based hooks at multiple places for process automation
    Descriptive Dashboard

    Descriptive Dashboards

    • Loan Funding Analysis - Historic
    • Loan outstanding analysis - historical patterns across industry type, funder, product, DPD bucket, funding period etc.
    • Loan DPD and exposure analysis - historical across funder, asset classes (Products), industry, geography
    • Loan 360
    Prescriptive Dashboards

    Predictive/ Prescriptive Dashboards

    • ALM analysis and forecasting
    • Loan segmentation and profiling
    • Probability of default computation

    Frequently Asked Questions

    The typical loan life cycle in origination is application submission to disbursement. 

    For a Loan Servicing Software, the lifecycle starts from disbursement and ends in payoff. The various function performed by a Loan Servicing System Software in the loan life cycle are: 

    • Loan Onboarding with Loan Account and Borrower Account Creation based on LOS input.
    • Loan Schedule creation based on Principal, Rate, Frequency, Payment Hierarchy and First Payment Date. Support for Moratorium period.
    • For LOC or revolving credit Funded & Non-Funded Limits Management and Multiple Disbursals
    • Document Management
    • Payment Workflow
    • Balance, Overdue, Excess Payment tracking
    • Apply Fees & Charges as per business rules.
    • Account Statements and delinquency management
    • Write off, Charge off, Sell off management
    • Closure Process, Unwinding process (in special scenario)

    Loan servicing is a cost and effort sensitive process. Technology can transform loan servicing into a revenue center. Loan Servicing System Software for private lenders starts from the time the loan is disbursed to the borrower until the loan is paid off.  Loan servicing includes sending monthly payment statements, collecting monthly payments, maintaining records of payments and balances, collecting and paying taxes and insurance (and managing escrow funds), remitting funds to the funder, credit bureau reporting, interface and sync with accounting system and following up any delinquencies.

    A Loan Servicing System Software helps in tracking and managing loans. There are a variety of loans provided by a lender be it in product offering viz. consumer loan, commercial loan, mortgage etc and within a product different loans might have different interest rates, payment dates, and more. It is difficult to track all these loans manually or using legacy systems and ensure business is on the right track.

    A cloud based loan servicing system solves this problem by having multiple products with different parameters configured under one single setup. The system allows us to calculate interests, fees, and more. A loan servicing solution can also assist you in automatically collecting funds via ACH, wire transfers, credit cards, and more.

    A lending servicing software should support multiple products for unsecured consumer and unsecured business lending typically Merchant Cash Advance or Factor based product, term loans, line of credit, portfolio based loans- used for Supply Chain Financing. 

    At the loan level the Loan Servicing Software for lenders should be capable of handling different interest accrual methods such as 30/360, Actual/Actual, equated monthly etc with multiple payment hierarchies.

    Loan Servicing Software, equipped with the latest technologies, prepped with analytics and disruptive tools like AI and machine learning can get more done in a shorter time, with better accuracy than a legacy loan management system to manage in today’s date.

    The features one should look for in the perfect loan servicing software are:

    • Scalability: The perfect loan servicing system should allow lenders to not only grow in terms of operations and exceptional service delivery but also allow them to diversify their product offerings. Scalability of the product also helps businesses to start small as per their requirements and once they hit the growth curve a scalable system helps to match the changed expectations.
    • Ease of deployment:  To implement, maintain, and troubleshoot issues arising from an advanced online loan servicing software that is data critical, 24*7 access to an IT team is a must. The good thing about most cloud-based loan servicing system service providers is that they not only provide quick implementation but also provide regular maintenance services, including bug-fixes, frequent upgrades, and IT support when needed.
    • Integrated solution: There are multiple facets in the lending business, right from onboarding, credit assessment, loan origination, underwriting, disbursal, and repayment. Having all these modules built into one seamless loan operating system or loan management system helps lending businesses save time, churn out loan requests, and create an overall pleasant experience for their customers by reducing turnaround time and being more efficient.
    • Centralized access: Loan servicing software solutions allow lenders to store all customer-related data throughout the customer lifecycle at a centralized location. They do away with the bottleneck of storage and retrieval of borrower data from multiple systems. 
    • Credit assessment: The better and more accurate credit assessment, better are the chances that lenders decide on interest rates and loan repayment terms that minimize their risk and maximize revenues. This is only possible when lenders have a holistic view of the creditworthiness of their borrowers including performance of existing loans from the online loan servicing software. 
    • Process Automation: Process automation goes a long way in automating mundane tasks thus reducing turnaround time and boosting operational efficiency. 
    • Transparency: All stakeholders, including clients, have a better view and more trust in the lending process. 
    • Responsive interface: Providing a mobile-friendly borrower or field staff interface is no longer an add-on feature, but a business-critical feature that you must look for in your loan management software system.
    • Analytics and insights: The best cloud-based loan servicing systems in the industry provide lenders with gold in the form of actionable data.
    • Seamless yet secure:  Loan servicing software solutions allow lending organizations to expand and grow by establishing centralized data storage that can be accessed by stakeholders with the right permissions from anywhere in the world.

    Read this article to learn more about what you should be looking for when choosing the right loan servicing software for your business.

    Automation and cloud computing have brought in a whirlwind of change globally and the financial services industry is no exception. 

    Customers, too, are increasingly getting used to quicker processes, and turnaround time, therefore having a business model that supports such needs is indispensable for lenders, especially the ones who look to grow exponentially.
    The main advantage of cloud based loan servicing platform is the ease with which it manages a large amount of data efficiently and rapidly without spending a huge amount of money on it. Scalability, too, is counted as a major plus when it comes to cloud-based servicing software.

    The main benefits of a cloud-based loan servicing system for the lending business are:

    • Improved Customer Experience: Top loan servicing software provides lenders with cloud-based lending solutions that offer an improved and consistent experience to the customers across multi-channel touchpoints.
    • Time-to-Market: Cloud-based modern loan servicing software for small business helps lenders get started in a shorter time than building software from scratch. This saves IT expenses and helps businesses rake in revenues from the first year itself. 
    • Innovation: Lenders need the kind of loan servicing system software that is agile, flexible, and scalable. Cloud-based loan servicing software technology enables lenders to execute new ideas with efficiency, at a high speed, and at a lower cost.
    • Real-time Analytics: Real-time analytics are crucial in analyzing the overall performance of a business. Cloud-based lending systems provide a 360-degree view of the overall performance. Analytics from Loan Servicing data also help in identifying borrower behavior, assess risky accounts and take proactive measures.
    •  Data Security: Most money lending software have periodic security audits and compliance requirements. This ensures a secured system and as a customer one must check the security certificates of the loan software for lenders. With proper controls such as authentication, access control, data encryption, data masking, integrity checking, and secure deletion, workflows in the loan lifecycle management system ensures that data is protected and secure.
    • Access & Collaboration: Cloud collaboration enhances internal communication among employees, increases efficiency, smoothens workflow, reduces turnaround times, and boosts transparency in the loan process. The overall result of which is a better customer experience.

    This article helps gather a better understanding on how best cloud based lending software helps lending business scale and grow.

    LendFoundry Loan Servicing Solution (LSS) helps lenders manage loan servicing digitally while offering scalability, security, speed and enhanced customer experience. Its API based design allows onboarding loans from any Loan Origination System (LOS) and serves as a system of record across multiple loan classes. You can record and track all loans, manage repayment schedules, track scheduled payments and ad-hoc payments, allocate repayments, and keep a check on delinquencies and closures. The system provides flexibility in choosing from multiple accrual methods and payment hierarchies.

    The business rules engine and workflow built into the solution ensures greater regulatory compliance with faster processing time.

    • For your customers, it acts as a self-service portal offering a single view of their loans, payments, statements and facilitates periodic, timely communications. 
    • For your support teams, they get everything required at one place and access to dashboards to manage loan portfolios efficiently. 
    • For your business, it provides Analytics and AI tools to identify the next best upsell and cross sell opportunities. You can get comprehensive reports or create reports based on interactions with a single individual or business or you can look at how profitable offerings are for you. Reporting allows you to visualize and understand in which direction your business is moving.

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