High interest rates are tamping down growth in mortgage originations and refinancings, challenging mortgage servicers. The reason: A complex environment characterized by economic uncertainty, ever-changing regulations and operational challenges.
The situation in 2025 could get worse before it gets better. Cynthia Treadwell, General Counsel at Sagent, notes she and her peers are seeing more delinquencies and defaults, with an expectation that foreclosure filings may begin to rise. Facing limited growth, servicers are focusing on increased efficiency and cost savings.
One area to achieve both is customer billing and payments. Cloud-based customer communication management platforms improve servicer workflows and scalability, allowing firms to pivot quickly to changing market conditions. Automation is crucial in lowering costs and streamlining servicing processes, allowing staff to focus on value-added activities and ultimately advancing overall productivity.
With CCM platforms, mortgage servicers are embracing less expensive digital communications to better meet evolving consumer preferences. It’s paying off: The most recent J.D. Power U.S. mortgage servicer satisfaction study highlighted borrowers’ favorable responses to improvements in their digital experiences.
Implementing modern communication technologies and methods delivers both short-term and longer-term business benefits. They enable servicers to consistently foster enduring relationships with borrowers, leading to increased trust, loyalty and predisposition to refinance with their existing servicer.
Elevating CX in billing and payments
Enhancing customers’ billing and payments experience is becoming a differentiator for mortgage servicers. Advanced CCM platforms offer a range of functionalities that simplify the creation, distribution, and management of borrower communications. When coupled with digital and self-service payment options, personalized and proactive communications are crucial to timely payments.
Here’s how cloud technologies can take billing and other customer communications to a new level of effectiveness:
Personalized communication. Going beyond simply addressing a borrower by name, personalization involves tailoring content to each customer’s specific needs and circumstances. Delivering relevant messaging throughout the homeownership journey, especially the servicing phase, establishes servicers as trusted partners, which improves retention.
Early, proactive intervention. Proactive communications can increase satisfaction while playing a vital role in heading off potential issues before they escalate. Instead of waiting for customers with late or missed payments to contact them, servicers can reach out with payment alternatives or other financial help. Customers also appreciate advance notice and clear explanations about potential escrow shortages due to insurance and property tax increases.
Prioritizing self-service payment options. There is a growing demand for self-service tools that allow consumers to manage their accounts independently with 24/7 real-time availability. By empowering customers to access information, make payments, view statements and manage their accounts at their convenience, servicers improve the borrower experience and realize cost savings through reduced reliance on direct customer service interactions.
Delivering seamless interactions. An omnichannel approach caters to individual customer preferences for communication methods such as mail, email, and text messaging. Borrowers expect a consistent and integrated experience regardless of the channel they choose to interact through. Providing this level of accessibility and convenience is fundamental to achieving high levels of customer satisfaction.
Evolving regulatory landscape
The mortgage servicing industry operates within a dynamic regulatory environment, with ongoing scrutiny from federal and state agencies shaping servicing practices. Just last August, the CFPB proposed updates to its mortgage servicing rules, aiming to streamline loss mitigation procedures, enhance early intervention notices to borrowers facing payment difficulties and address language requirements for borrower communications.
Then, in mid-April 2025, the U.S. Department of Housing and Urban Development (HUD) also issued updates to its servicing and loss mitigation policies, including removing previously proposed language accessibility requirements. Even so, servicers still will need to modify their processes and communication strategies to reflect the sunsetting of COVID-19 Recovery Options and the FHA-Home Affordable Modification Program.
CCM platforms give servicers the agility and control to adapt to changing regulations and business conditions. They are able to balance the benefits of digital innovation with the need to cater to diverse borrower preferences and adhere to a fluid regulatory framework.
Contact us if we can help you leverage technology to provide seamless, transparent, and personalized billing and payments communications to your customers.
