Mortgage Saver Markets Bi-Weekly Loans to Borrowers.(Brief Article)

Mortgage Saver Inc., an automated electronic payment processing service, is in a growth period being spurred on by its new relationship with Frost Mortgage, an Albuquerque, N.M.-based mortgage broker and banker.

Also contributing to the growth is the recent upswing in the refinance market where the company's "volume has increased somewhere between 10% to 15% within the last two months," said Mortgage Saver's president and founder, Mitch Lichterman.

Mortgage Saver's clients are the borrowers, though its services are marketed through lenders and brokers in the industry.

The company is a provider of a biweekly payment program. Mr. Lichterman explained, "The clients pay one half of their normal mortgage payment every other week. The payments are forwarded to the lender on a monthly basis.

"After 52 weeks and 26 payments, the client has completed an extra month's payment within a year, reducing interest payments and the life of the loan."

The funds from borrowers go through an automated clearinghouse system. They are directly debuted from the borrowers' checking accounts, forwarded to Mortgage Saver's "business bank that process the debts through the Federal Reserve" and then the payments are forwarded to the appropriate party.

According to Mr. Lichterman, "The industry average is that institutions receive mortgage payments on the ninth of each month and it clears by the eleventh. With the Mortgage Saver program, the payments are transferred to the institution by the third of each month, so they can earn interest on those funds and an extra nine days each month."