Sorry for the anon post. Our senior lender does not think that they should have to mail out past due notices to customers. She is afraid that it will confuse customers who are currently refinancing loans, etc. For obvious reasons, we are recommending that past due notices be mailed to customers, (1) because of new language pertaining to the FACT Act, (2) it reminds customers that their payments are due, and (3) it serves as a control to find fraudulent loans. Does anyone have any input on this subject? Do you have any articles that detail how delinquent notices helped identify fraud, etc. Thanks!

Interesting! Is he/she looking to increase the bank's past dues? I would have to hear a better argument then the customers could become confused, before I stopped sending them out.

I think your first two reasons should be enough (Also, don't forget the Homeownership Counseling Notice). I'm not sold on the fraud reason. If I am going to commit fraud, you would think that I would be smart enough to not set the address to a customer's real address. (I'm assuming that you are relying on the customer to catch the error.) That is just too easy to get around.

The only thing that customer would catch is that their payment wasn't posted to their account. So is this what you mean by fraud? More of a taking payments and posting them somewhere else?

I haven't seen any articles on this subject, but this is about the most I'm willing to say about this in an open forum. I think you hang your hat on the first two reasons and hold your ground. I'd only use the fraud card as a last defense. But, that's just one man's opinion.