In a time of great change, you need loan servicing software that thrives in change...

When people lose their income, they lose the ability to repay their debts.With all the layoffs and everyone earning less money, there really is no recourse for lenders but to allow periods of forbearance, deferral, and modification.Your loan servicing software needs to be able to allow for rapid review and modification of your loans.
Increasingly greater measures are being enacted to help slow the spread of the virus, and that has an immediate effect on the liquidity of any collateral on a loan.You can’t foreclose and sell a house if there’s no way for someone to buy it.Repossessing a car and selling it will be very hard if non-essential services are shut down and people that might have been buyers are also feeling serious financial hardship.You can’t take the appliances from someone’s home amidst the outbreak without a variety of risk.
At this point, we’re all addressing the fact that the economic situation has changed beyond anyone’s ability to control it.Our existing loan terms si…

Loan Servicing Software

When choosing a good loan servicing software system to manage and calculate your loans, you want to be sure you’ll be able to do manage your loans quickly and without errors.  With your first few loans, it’s no big deal to spend 10 or 20 minutes making sure the numbers are right.  Once you get ten or twenty or a thousand loans, spending twenty minutes per loan is no longer an option.
Moneylender Professional is loan servicing software built with a set of manual and automatic configuration mechanisms to allow you the fine-grain per-loan management tools you need to handle every situation along with a set of tools for bulk operations that might apply to many or all loans under management.Developed under close guidance from the lenders that use it, every facet of Moneylender is built to make servicing loans faster and easier.
No loan servicing system would be worth much if lenders couldn’t use it to effortlessly produce supremely professional statements, letters, notices, payoff quotes, …

AutoPay Gets a Higher Daily Volume

Our sponsor bank has granted us a new higher processing limit.  The first and fifteenth of the month are always big days for loan payments, and those two days account for roughly 50% of the total monthly payment volume.  The payments scheduled for March 1st put is very close to our cap, and I reached out to the bank a few days in advance to let them know a temporary increase might be needed.
The bank raised the processing limit temporarily for the big batch on the 1st of March, and later approved our application to make the increase permanent.This gives us space to grow for at least six more months before another limit increase is likely to be necessary.
Since AutoPay first started as an Alpha trial program about eighteen months ago, we’ve processed over a quarter million dollars in over 600 payments.There are well over a hundred borrowers using AutoPay to get online access to their loans and to make ACH payments directly from their bank accounts.
All kinds of weird shenanigans have …

2019 IRS Form 1098 - Tips to help you avoid some common mistakes

Lenders across the United States are preparing their IRS Form 1098 Mortgage Interest statements before the January 31st deadline.While most of the boxes are pretty obvious, there are a few gotchas on the form that might trip you up.
Using Moneylender Professional loan servicing software, the right data will be compiled and filled into the forms, and usually means that printing your 1098s each year will be quick and painless.If you’re filling out the forms by hand, here’s some important tips:
Box 1 – Mortgage Interest Received
This number is the sum of the interest from all payments during the 2019 calendar year on the loan and any late fees that were paid by those payments.Don’t forget to include late fees collected as part of the reported interest on form 1098.
Box 2 – Outstanding mortgage principal This is the balance at the beginning of 2019, not at the end.If the loan was originated or purchased in 2019, enter the opening balance of principal balance at the time of purchase in th…

Taking the Leap – Making Bold Moves toward New Horizons

It goes against my grain to stand on a soapbox and ask everyone to look at me.  I have to remember that what I have to offer is really quite good.  The people that need my software are going to be very happy they found it.  It’s worth being a little pushy for us both to benefit.  Many of the people that call with questions before deciding to buy my system say the had searched the internet at great length before they finally found me.  Anything I can do to make that search quicker is just a smart move.
I was buying something at a local music store and casually asked if they do in-house financing, in hopes that I might be able to buy some loans at a discount.The person I was talking to said they did zero-interest-for-a-full-year on any purchase, which didn’t sound too appealing.I groaned that I really want to make some loans, and the person that had helped me with my purchase asked if I would consider making a loan to an individual.I said “of course!” and they mentioned that, as a semi-…

The Secret Sauce to Make Any Business Work

I’ve read a lot of business books.Books on management, leadership, advertising, marketing, internal processes, hiring, motivational and inspirational books.I link to think I’m somewhat well read on the subject.If all these authors were my patient teachers, I don’t doubt I would hear a great collective sigh of relief that I am finally beginning to understand.
Moneylender is the primary product that my company produces.It’s not surprising that the vast majority of my time is spent on Moneylender-related activities.For fifteen years, I worked almost every day to build the best solution to the problem of managing loans that I could conceive.I’m pretty happy with the result, now manifest in Moneylender 3.
That’s great, really it is.Having a product that holds my complete confidence is a very important part of being a successful business.But I missed the point.Sometimes narrowly, sometimes entirely, but I definitely didn’t quite get the reality of the situation as it was being so masterfull…

The Five Keys to Accounting for Loans at Tax Time

It might seem daunting to try to make sense of your loans when it’s time to do quarterly assessments or annual tax returns.Business finances from loans are actually not too hard to manage, as long as you keep in mind two or three key ideas.
Interest, Fees and Points – This Is Your Profit All the interest you receive, the fees you collect, and the points you were paid when the loan began – thee things are your profit.They’re income, and taxable in most situations.You don’t need to separate these numbers. Their total is how much revenue you brought in from lending.In some places, you can’t report the points or origination fees as profit all at once, you have to report them over the scheduled life of the loan.In most other places, you report the fees and points as profit as soon as they’re received.
Charge Offs – These Are Your Losses If you have given up on collecting a loan and have to take a loss, you write-off the unpaid principal balance.You’re not writing off interest or fees that d…