Buttons and Levers for Lenders and Debtors

One Thursday afternoon, I told my son that I didn’t want to get anymore emails home from his teacher telling me that “he didn’t finish his classwork at school today.”  I further stated that if an email was sent that he wouldn’t be allowed to play computer games at all that weekend. Near the end of the school day on Friday, my boy was close to finishing his work, but not quite done.   He and his teacher were having their daily argument about completing classwork.   That’s when my son asked his teacher not to write an email to me because he would lose computer. Surprise, surprise, I got an email from his teacher that afternoon.   My son told me about what happened during the day, and I had to chuckle a little bit.   Here’s the approximate conversation that ensued. Dad: If I give you a box with a huge red button on it.   What do you want to do with that button?   Son: Push it. Dad: It feels good to be in control of things, doesn’t it?   Like holding the TV remote or being the mo

Observations on Lending as COVID-19 Spreads Globally

 I hope you’re all safe and healthy out there.  I’m seeing a couple little ripples in lending amongst Moneylender users, and I though you might find the observations interesting. The story told by Moneylender sales… Sales slowed for the first several months of the pandemic, and then sort of adjusted back to regular levels.   The collections freezes and proffered forbearances in March and April of 2020 made the lending industry hold its breath.   Once the job situation began to stabilize, we could see who would be losing their jobs and who would remain employed. We saw a surge in Moneylender sales as people adopted our software to help with their workload as refinances and reinstatements were officially structured into debts around May.   In spite of the surge, the overall sales numbers were depressed throughout 2020, alongside an apparent slump in new debts among Moneylender users, and I would speculate that uncertainty for the future is causing people to avoid new purchases, deb

Moneylender Professional in 2020

A lot has happened since the last time I posted.   The coronavirus outbreak that causes COVID-19 hit the world and put us all indoors.   I started a YouTube channel.   Moneylender has seen fifteenish updates, adding around 50 new things to the program alongside other fixes and changes. Monthly sales of Moneylender went up and down during the pandemic.   Overall sales are growing.   In one two-week period we were getting one or two new customers almost daily.   It was an unprecedented rally – surpassing the highs from the December-January surge to set a new monthly all-time record in May. COVID led to a lot of forbearance and other types of plans to ease the financial burden as businesses were shut down.   I wrote a new section onto the Settings tab – “Special Situations” where you can easily set up any combination of forbearance, reinstatement, waiving or capitalizing interest, and/or adjusting the escrow to be collected.   Of the handful of people that I’ve helped to use the new

Building the Best Loan Servicing System Because We Refuse to Settle for Anything Less

I had a customer ask me a lot of questions about making a report in a very specific way.   I explained that the information they were asking for isn’t always meaningful.   If a loan pays exactly on the amortization schedule, then perhaps what they wanted would make sense.   The moment the borrower missed a payment, or made several partial payments, the data they wanted would no longer look how they wanted it to look.   Furthermore, while Moneylender would be accurately presenting the information based on reality, that reality wouldn’t match the amortization schedule like this customer really wished it would. I tried explaining this, and that having the requested data on a report wouldn’t really satisfy their desire to make a loan that pays irregularly look like it was perfectly following the amortization schedule.   The customer asked me the same question again, almost word-for-word.   I was dumbfounded!   Did I fail to express my comprehension of the information they desir

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.

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,

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 1 st 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 1 st 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 o