A new survey by ACI Worldwide and Mastercard Advisors showed that late payments on mortgages are reduced when convenient payment methods are present, according to a survey of 400 mortgage-holding U.S. consumers.
The companies found that having a convenient payment method lowers call center calls by close to 85 percent and social media complaints by nearly half. It also showed that beyond interest rates, nearly six in 10 survey respondents choose a mortgage company based on whether it had convenient ways to pay each month.
What’s more, ACI and Mastercard Advisors said survey respondents’ preferred mortgage bill payment method is with a card. That is expected to increase as more millennials become homeowners, the companies noted in a press release highlighting the results of the survey.
According to the survey’s results, half of the millennial respondents signaled they are not happy with current payment methods such as ACH, online banking and check. Of those respondents, more than 30 percent have contacted their mortgage services for questions and to complain about the payment process.
“To enhance their profitability, four of the 20 top mortgage servicers accept card payments today,” said Steve Kramer, vice president at ACI Worldwide in a press release. “When it comes to mortgage payments, we’ve gone beyond early adopters to the early majority stage, which is further reinforced by this new data. Card payments will [continue to] enhance ease and convenience for mortgage customers.”
The survey also found that complicated payment processes were to blame for 23 percent of late mortgage payments by millennials.
“First and foremost, we want members to pay and have the options to make it convenient for them to do so,” said Rob Lefkowicz, vice president of operations at Langley Federal Credit Union, in the same press release. “Therefore, we offer many easy options, including debit cards and ACH, across self-service channels for members to pay their mortgages.”