The recent increase in some postage rates is another reason for mortgage originators to continue streamlining their processes and move more towards an electronic document package, said an executive with eLynx.
Additional postage, depending on the size and weight of the package, plus the number of packages being sent, could add hundreds of dollars or hundreds of thousands of dollars to an originator’s costs, explained Andy Crisenbery, vice president, professional services of the Cincinnati-based company.
The U.S. Postal Service, while keeping the base rate of a first class stamp at $0.44 for the first ounce, increased the cost of each additional ounce by $0.03 to $0.20 per ounce on April 17.
His words are in part a warning to lenders that they need to be ready to deal with these increased costs, but there are those that are being proactive in looking to reduce their mailing expense and coming to eLynx looking for help.
It has been working with the larger lenders which have high volumes of mailed packages “to help mitigate that increase in costs via our training programs and e-adoption approach.
“We also informed all of our print and mail customers, some of which were unaware of the upcoming increase in delivery fees, to give us the opportunity to work with them to help mitigate that cost with e-adoption as well,” said Crisenbery.
Based on the metrics eLynx looked at based on the last 12 months of print mail fulfillment on packages it processed the average increase is just under 9.5% per piece, or $0.23 per package.
It doesn’t sound like a lot, but when several thousand packages a month are sent through the mail, it adds up. The range of increase based on packages prepared through eLynx goes from 2.8% up to 16.1%, he said.
Crisenbery said eLynx is working with lenders to look at their electronic adoption approach. There are training programs from eLynx that helps them get the message to package recipients as well as preparing the internal staff on ways they can best take advantage of electronic delivery and increase adoption on both sides of the transaction.
The company operates a secure electronic delivery service called eClosingNet, which is supported by two national data centers, one in Cincinnati and the other in Portland, Ore. It also provides electronic signature capabilities once the package is received.
If a package ends up being sent via traditional mail services, it has to be returned to the lender using the same methods, adding to the increased postage costs, he said.
This increase in rates could be one of the contributing factors that will result in increased adoption of electronic document packages by lenders. “Today’s environment, being competitive as it is, they’re looking at all avenues to increase their productivity and reduce their costs. So this increase in delivery costs from USPS is just one more of those factors they’re looking to mitigate,” Crisenbery explained.
