Willow recently surpassed $500M in loans serviced through our servicing product. Since launching in February 2022, we have iterated on almost every aspect of our product - from our borrower FAQ to our payment file format.
One of the most important metrics we track at Willow is our on-time payments rate. We carefully monitor the percentage of payments that are received on or before the due date and grace period.
At Willow, we’ve achieved a 100% payment rate on our platform. The average borrower pays 3.4 days before the due date, with 99.4% of borrowers paying by their grace period.
Below are the most impactful ways to increase your borrower payment rate.
Set Expectations at Closing
Borrowers are most engaged during the weeks around closing. While there may be a whirlwind of information being thrown at your borrowers, keeping them informed of what to expect for their first payment is key. Often because of the uncertainty of who will be collecting the first payment, lenders under-communicate.
With Willow, all borrowers have 1 place to go, whether they owe the payment to you or to their new servicer. We recommend all lenders define a singular process for their borrowers and outline the process in the closing documents and online FAQ. Do not expect the borrower to remember their loan number, the date they should receive a notice, or navigate to your site.
Provide Payment Details
Willow sees high engagement with our mortgage statements. While payment breakdowns are included in the closing documents, providing borrowers with easily digestible information on mortgage gives peace of mind.
Willow prompts the borrower to make the exact payment that is due. If a borrower chooses to overpay, we inform the borrower where the extra funds will be applied. Borrowers can also view how much principal is outstanding & their escrow payment details - allowing them to spot check and ensure all calculations are correct.
Goodbye Letter Timing
Many lenders send their goodbye letters as soon as a new servicer is identified. We find that this leads to missed payments that end up getting written off at year-end.
Willow recommends sending the notice of servicing transfer immediately if no payments are owed. If a payment is still outstanding, we recommend waiting until the payment is collected or 15 days prior to the effective transfer date.
Providing digital communications allows for timely notification and automation. Systems like Willow can manage complex logic to send borrower notices at the optimized time based on the status of the loan. With emails, you are also able to track delivery rates and open rates, ensuring the borrower has received all relevant information.
If you are interested in seeing a demo or learning more about how Willow can help your company, send us your details here.