Payment ease influences borrowers' decisions about what company to get a loan from, according to a survey released at the Mortgage Bankers Association's 2018 National Mortgage Servicing Conference.
Borrowers, particularly millennials, also prefer to pay their mortgage with a credit card, according to the survey by electronic payment company ACI Worldwide.
"To enhance their profitability, four of the 20 top mortgage servicers accept card payments today," Steve Kramer, vice president at ACI Worldwide, said in a press release.
More than 30% of millennials have contacted servicers with questions or complaints about payments.
Late payments occurred for one or more of the following reasons: forgetting to pay due to a lack of text or email reminder (23%), the complexity of the process (11%), the need to prioritize another bill (17%), or lack of available funds (57%).
Responses are based on an online survey of 400 borrowers conducted in November 2017 by MasterCard Advisors on ACI's behalf.
In other news at the conference:
• Claims without conveyance of title auction services are the fastest growing segment in servicing, according to provider Williams & Williams.
• New modifications added by Fannie Mae in response to the unusually large wave of recent natural disasters can now be automated, according to workflow management software provider Clarifire.
• Servicing and tax service data will be integrated in new technology coming to the market from real estate tax and flood services provider Lereta.
• Property preservation will be automated with panoramic photo, video and audio capabilities in a new application Safeguard Properties has.
• Compliance and other functions will be part of a new rebranded version of IndiSoft's RxOffice technology that unifies its modular technology products on a single platform. The new platform is called Sunesis.