AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
New Generation of EPS Benefits Mortgage Industry.(Earnings Per Share )
Mr. Noser is vice president, Western Union Alternative Payments. He can be reached at brett.noser
The recent real estate boom has found borrowers taking advantage of more than just historically low rates on 30-year, fixed-rate mortgages, but also programs designed to get cash-poor buyers into homes. While these instruments have low interest rates now, history tell us they could leave buyers - and ultimately mortgage companies - in a lurch as market fundamentals change in a few years time.
Currently, late and delinquent mortgage payments are increasing across the board prompting companies to re-evaluate payment processes available to consumers. According to the American Banking Association, consumer loan delinquencies jumped to 2.02% in the first quarter of 2003 from 1.64% in the fourth quarter of last year. In early 2003, the Federal Reserve reported that overall household debt has increased at a double-digit pace for the past five quarters. Additionally, the Fed said, household debt increased at a 10% annual rate in the first quarter of 2003, with mortgage debt increasing at a 12% annual clip.
In many cases, as rates begin to rise, homeowners will find their monthly mortgages becoming drastically higher, bringing little relief to mortgage companies dealing with delinquencies. Today, mortgage companies are turning to electronic payment solutions to improve cash flow, while providing the consumer with greater options in how and when to make a payment. While electronic payments are nothing new, the benefits of more efficient options continue to increase. By using electronic bill payment systems, mortgage companies can secure a payment over the phone or online via electronic check, credit card or debit. Companies most often use a service provider with expertise creating and settling electronic payments, to not only save money, but ensure compliance.
How it works
The ACH process (used to send payments electronically) eliminates much of the paper handling that slows the check-clearing process and increases cash flow as payments are accepted more quickly/faster. According to the First Federal Savings Bank, ACH can save businesses as much as 62 cents per transaction. Payments are collected from consumers via touch-tone telephone and state-of-the-art Interactive Voice ...
- Barriers Continue to Obstruct Adoption of Electronic Payments in B2B...
- Press release article from: PR Newswire October 27, 2004 700+ words
...willing to migrate from checks to electronic payments for business-to-business transactions...Professionals (AFP). The AFP 2004 Electronic Payments Survey, however, also finds that...progress toward the wider use of electronic payments by businesses. While more than...
- Standard for B2B Electronic Payments to Be Offered In Leading Accounting...
- Press release article from: PR Newswire May 25, 2005 700+ words
...growing and mid-tier companies. The Electronic Payments Network, the ACH payments business...adoption of business-to-business electronic payments: the lack of a single, standard...820 facilitates cost-effective electronic payments by rationalizing the complexity...
- Electronic Payments: A 'Must Have' For Consumers, Retailers and the Economy...
- Press release article from: PR Newswire November 22, 2006 700+ words
...hand-in-hand with accepting electronic payments, including increased spending...The forecasted 70 percent use of electronic payments - whether shopping online or waiting...by the 20th century innovation of electronic payments. "Electronic payments offer tremendous...
- Mortgage companies grabbing market share. (Finance Monday)
- Magazine article from: Crain's Cleveland Business Shingler, Dan October 25, 1993 700+ words
...loans, or even banks. They're mortgage companies. And both trace their roots no further...home lenders in Cuyahoga County were mortgage companies. Back then, the list included four...four-lane high-ways. "We (mortgage companies) have really come of age in the...
- Electronic Payments Coalition Statement on Price Control Legislation (H.R....
- Press release article from: PR Newswire March 7, 2008 700+ words
...March 6 /PRNewswire/ -- The Electronic Payments Coalition issued the following statement...introduced today (H.R. 5546): The electronic payments system is a premiere American example...highly competitive marketplace, the electronic payments system has revolutionized consumer...
- B2B Electronic Payments Growing.
- Press release article from: PR Newswire October 22, 2007 700+ words
...Barriers remain, but adoption of electronic payments systems for business transactions...Professionals (AFP). The 2007 AFP Electronic Payments Survey showed that while checks...2007 survey, underwritten by the Electronic Payments Network (EPN) is a follow up to...
- University of Florida and Wachovia Bank Drive Electronic Payments for Grants;...
- Press release article from: PR Newswire June 22, 2004 700+ words
...22 /PRNewswire/ -- Today the Electronic Payments Network (EPN) announced the first...number. It increases the security of electronic payments by allowing organizations to provide...the origination and receipt of electronic payments will be an important component...
- Electronic Payments Now Account for the Majority of Consumer Payments Across...
- Press release article from: Business Wire October 6, 2008 700+ words
...Updates Trends in Cash Vs. Electronic Payments DALLAS -- Consumers are increasingly using electronic payments at the expense of cash and checks...electronic payment methods. Electronic payments now account for the majority...
Source: HighBeam Research, New Generation of EPS Benefits Mortgage Industry.(Earnings Per Share )