We are often asked about the best way to process ACH. Lenders wonder if there’s a provider or integration we recommend. They are usually surprised when we tell them that we have ACH processing embedded right inside the Nortridge Loan System (NLS). That is to say, our customers do not need a payment gateway or processor to accept ACH. It’s a feature that has been in our Nortridge loan servicing software platform for more than a decade and has only gotten better over time. We have built into NLS the full ACH lifecycle, including presentment, representment, returns and corrections. We also support the Canadian AFT (US ACH equivalent) using the CPA Standard 005 format.
How to Take Payment on Loans in the Nortridge Loan System
In NLS, it’s easy to set up ACH processing so that you can begin receiving lending payments. Simply create an ACH Header, this is the description of the transmission file with information that your financial Institution will provide you, and an ACH Company (the account to deposit the monies into) in the NLS Setup and then start collecting payments.
Here Is an example of the ACH Header and ACH Company:
After the ACH has been defined, your financial institution will want you to submit the file to them, we can automatically generate the NACHA file and transmit it to them using a security SFTP file transmission. Once the file is transmitted, it will be processed, and if there are any returns, the financial institution will generate a return file, which can be retrieved automatically using SFTP and then process the payment reversals against those posted payments.
Sometimes, the return file will contain change records. NLS can also automatically process those change records that change account numbers, routing numbers, etc. Representments can also be set up to re-transmit returns that are received, back to the financial institution for a representment against the borrower’s account.
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For a more indepth look at all of the features and functions within the Nortridge system, request a free demo. Just fill out this form below and one of our loan software staff will be in touch to arrange that with you.
Options Available in NLS for Receiving Lending Payments
Here are some of your options while setting up your ACH payment processing in loan servicing:
- Creating a rule that automatically re-opens a closed loan when an ACH is returned. This is helpful for loans that are automatically closed when the last ACH payment is processed. What if the payment fails? This simple feature saves time by automatically re-opening loans.
- Allowing for a one-time grace period for the next ACH payment. This feature is one of the enhancements we have rolled out to help our customers expand their payment flexibility business rules due to COVID. A borrower can call in, and your reps can set a grace period, effectively delaying the next ACH payment date. It can also be implemented in an automated fashion by allowing the borrower to go into the borrower portal and ask for a grace period.
- Suspend ACH on a configurable number of returns. This Is helpful to control return thresholds and keep return costs down.
- Automatically revoke ACH privilege on an account that has returns with a closed status.
- Notifications can be configured to send to borrowers via email or text that an ACH is going to be processed in x number of days. Also, notifications for successful ACH and returns and representments can be configured.
Lastly, it’s worth noting that our native ACH processing is included in the system’s cost – we don’t charge an additional fee for ACH processing.
Streamline Your Loan Servicing with Integrated ACH Processing
The Nortridge Loan System (NLS) offers an efficient and comprehensive solution for ACH payment processing in loan servicing. With the full ACH lifecycle built into the platform, lenders can easily manage presentment, representment, returns, and corrections, while seamlessly processing their lending payments. The user-friendly setup process, support for Canadian AFT, and various options for handling lending payments make NLS a versatile choice. By leveraging the integrated ACH processing feature, lenders can streamline their operations, save time, and enhance their services while reducing the need for third-party providers or additional fees. Request a free demo today to discover the full potential of the Nortridge Loan System for your loan servicing needs.
