Loan management software is a practical application developed to keep track of all customer payments, cash flow, funds flow and lending records. Loan management software helps to accurately calculate the portion of each payment that is to be applied to interest, principal, escrow, late fees, etc. This loan management software also provides an extensive suite of report options including, account history, promises to pay, payment coupons, monthly billings, late notices, escrow balances, loan payoffs, insurance and property tax renewals, accounting reports and many interest statements.
Loan management software assists in maintaining detailed reports on the financial position of a customer. It handles all types of loans including standard mortgages, interest only loans, balloon payments, etc. This loan management software simplifies the transactions by regulating the business activities and maintaining proper financial and landing records. Loan management software consist of various modules including lending module, lender module, mortgage module, deed of trust software, loan servicing software, loan tracking and loan management module, etc.
A loan management software program has a great impact on lender companies due to its dynamic and flexible nature. It is good for investors, loan companies, and not-for-profit organizations. Loan management software builds long term clients relationship, updates database management and helps in management upgrades. Following are some of the major features of loan management software:
- Easy to use software “user friendly” and powerful.
- Partial payments are accurately calculated / tracked.
- Loan payment postings are easily entered.
- Charge / collect late fees.
- Charge / collect miscellaneous fees.
- Post and track escrow payments / disbursements for insurance and taxes.
- Create / print amortization schedules.
- Ability to handle conventional and non-conventional financing.
- Scan / store documents pertaining to each account.
- Sharing of principal, interest and late charge payments between two entities.
- Affordable, easy to use, and fully featured.
A loan management software system manages the database or loan information. This information is used for servicing the loans, tracking current installment payment status and other accounting or cash flow information at the same time. Its basic purpose is to keep up with all the financial data necessary to manage the portfolio of loans. It also integrates with various business modules. It automatically updates itself and can work with a small to medium size lenders easily. There is no limit to the number of loans it can store. Additionally, it calculates all the financial numbers one need and maintains all payments and late charges due and past due.
Some vendor companies offering loan management software also provide a free “net session” with their tech support specialists who set up this software on the computers and who will provide the initial training to run the loan management software.