Posted by NationalACH on Mar 27, 2017
Echecks for Loan Modificiation

Modifying loans is a much-needed service. If your business offers this complex service you already know there is no lack of demand.

However, a lack of investment in compliance and technology has had an impact on services. Borrowers are facing increasing challenges to get their loans modified appropriately.

But the Home Affordability Modification Program (HAMP) has managed to streamline the process and boosted the number of borrowers who can qualify for loan and mortgage modification.

Service providers have increased alongside the shift in demand. But more than two years ago, the Consumer Financial Protection Bureau published a set of rules and regulations for firms in the industry.  In a recent report, the CFPB found that American borrowers were still being harmed because many loan modification companies failed to invest in better compliance and technology.

In such a crowded market, improving service quality and technology has the potential to make your business stand apart. Here are three ways you could make your loan modification business succeed.

Automate To Reduce Errors

One of the key findings of the CFPB report was that loan modifiers were not able to manage data appropriately. All the information about modification options and client details were lost because the technology was outdated and the staff lacked training.

This is a relatively easy problem to solve. Automated payment networks like Automated Clearing House (ACH) can drastically reduce the number of errors at the point of sale. An ACH or echeck account allows your business to automated the process and take the human out of the equation.

The reduced chances of errors and reliability of electronic check processing helps boost customer confidence.  Clients  feel secure with an efficient electronic payment system that ensures all data is collected & managed properly.

Invest in Compliance

With proper staff training and data collected from an an echeck or ACH merchant account, complying with regulations is a lot easier. CFPB servicing rules require a thorough process that helps the borrower stay up to date with payments. With an ACH account your business has access to a well-developed, and nationally recognized platform. The platform makes it easier to offer loan modification services and take recurring payments throughout the year to service the loan. This should help your business stay on par with the standards set by the CFPB.

Protect Your Clients

Protecting client data securing the payment is of the utmost importance. An ACH account grants access to a platform  that can allow your to process echecks which electronically debit funds from clients’ bank accounts. Echecks are a better, more secure option as compared to traditional checks and even credit cards. A direct debit to your business’ ach account is much more stable, considering people don’t change bank accounts as frequently as credit cards.

The payments can be made through multiple channels and the system is designed for recurring billing models like loan modification. This ACH account can help you prevent chargebacks and reduce the level of fraud as well. You can accept payments online through an API or allow clients to pay over the phone and through the mail by means of a virtual terminal.

Each year, $39 trillion and 22 billion electronic financial transactions move through this highly secure system. The system is so widespread, businesses across the country sign up simply to offer convenience and security to their clients.


Getting a loan modification merchant account will help you secure your clients, comply with the rules and reduce errors. These three simple steps can vastly improve your service quality.

Interested in accepting echecks from your customers?   

Contact us to learn more about this payment network.