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The Path to More Productive Payment
Processing

Today’s mortgage environment requires servicers to be intensely
focused on efficiency. For most, this means either enhancing
existing technology solutions, or deploying new ones, to streamline
operations. If servicers can simplify a complex process by doing so,
the benefits will follow.

An example of this is the invoicing process, particularly when a
loan is in default.  During this cycle, large volumes of
invoices are submitted that require review, reconciliation and
payment.  This process can be made more efficient with
solutions such as LPS Desktop™ Invoice Management.
Through client customized workflow, third-party invoices
are tracked from submission to payment in one Web-based application,
and can be viewed at any time for status.

In addition to client customized workflow capabilities, LPS
Desktop Invoice Management also offers an Electronic Payment
Option which expedites the check payment stage of the
invoicing process. This feature interfaces with servicing systems,
such as LPS MSP, to provide efficiency gains, enabling servicers to
process third-party provider payments more effectively.  When
comparing traditional check production to electronic payments, the
benefits are clear: reduced costs, enhanced processing and improved
accuracy.

When servicers traditionally produce checks in LPS Desktop
Invoice Management, the system transmits a check disbursement file
to the servicers’ servicing platform or directly to the servicer.
The servicer then takes the appropriate information from this file
in order to pay its third-party providers. Checks are printed,
reconciled and mailed manually to each vendor, involving multiple
servicer personnel in the process.

Check production and distribution can be a time-consuming
process, particularly with the large number of third-party services
being billed during the normal default cycle. The expenses for
personnel, postage, paper and printing supplies are a key factor
when budgeting costs.   Some commentators have estimated
the costs associated with the check payment process to be as much as
$8.00 per check, or greater!

By contrast, the Electronic Payment Option in LPS Desktop Invoice
Management gathers information nightly from the LPS MSP system
during the daily transaction processing cycle and uses the
information to create a separate payment file. With the servicer’s
written authorization, LPS Desktop Invoice Management then withdraws
the required funds from the servicer’s bank account(s) and deposits
them into the appropriate vendor bank accounts within two business
days.

With the Electronic Payment Option, servicers eliminate printing,
materials and postage-related expenses. Staff previously dedicated
to performing these functions can be reallocated internally to
perform other key functions.  By infusing automation into the
manual process, servicers recognize greater levels of accuracy, and
concerns over lost checks and stop payments are reduced or even
eliminated.

The Electronic Payment Option provides servicers with the same
audit trail reports currently available through LPS Desktop Invoice
Management.  It also provides reconciliation reports for the
servicers’ third-party providers, allowing them to respond to
payment inquiries quickly.   Third-party providers can
compare LPS Desktop Invoice Management reports with what is in their
bank accounts, reducing the need for them to contact the servicer
directly.

Servicers choose the Electronic Payment Option feature in LPS
Desktop Invoice Management as a tool to realize meaningful cost
savings in their daily operations.  There is a small
implementation fee to the servicer to get started.  Servicers
pay just one fee per vendor per day even if multiple invoices from
that vendor are being paid that day.  Each daily transaction
can run as little as one dollar, contributing to significant savings
overall.

While defaults continue to rise, servicers are constantly looking
to manage or cut costs and keep losses at a minimum. For those using
LPS Desktop Invoice Management and LPS MSP, incorporating the
electronic payment option for the payment of vendor invoices
improves efficiencies and accuracy, while contributing to servicer
efforts to reduce costs.

To learn more about LPS Desktop Invoice Management’s
Electronic Payment Option, contact Pam Beck-Janssen at 651-234-3698
or via email at mailto:[email-masked]

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