Every year, mortgage companies lose tens of thousands of dollars due to one simple issue—undeliverable mail. Whether it’s mortgage statements, escrow analyses, or delinquency notices, mail that doesn’t reach its intended recipient wastes resources, strains operations, and creates compliance risks.
In a competitive industry where accuracy and efficiency are critical, address hygiene is a game-changer. By ensuring that mailing addresses are verified and up to date, mortgage companies can significantly reduce costs, improve compliance, and enhance the customer experience.
This blog will explore what address hygiene is, why it matters, and how tools like NCOA (National Change of Address) and ACS (Address Change Services) can save mortgage companies thousands of dollars annually.
The Hidden Costs of Undeliverable Mortgage Mail
Mortgage companies handle vast amounts of sensitive mail, including loan statements, interest rate adjustments, and escrow notices. However, undeliverable mail caused by:
- Outdated Addresses (borrowers moving without updating records),
- Typographical Errors, or
- Incomplete Entries
and can wreak havoc on operations.
What It Costs Your Business:
- Financial Losses:
- Every undeliverable piece of mail incurs wasted costs for postage, printing, and reprocessing.
- For instance, a mortgage company sending 50,000 statements per month could waste tens of thousands annually due to inaccurate addresses.
- Operational Inefficiencies:
- Staff must manually process returned mail, investigate errors, and resend statements.
- These inefficiencies take time away from higher-value tasks and increase labor costs.
- Regulatory Risks:
- Mortgage statements are time-sensitive and legally required to arrive on schedule. Undeliverable mail creates compliance risks that could result in fines or legal issues.
Example: A medium-sized mortgage service noticed that 8% of its monthly mailings were undeliverable. By addressing this issue with NCOA checks and ACS reports, they cut their undeliverable mail rate in half—saving thousands annually in postage and labor costs.
What is Address Hygiene?
Address hygiene refers to the process of verifying, cleaning, and maintaining mailing address accuracy within a database. This ensures that mail reaches its intended recipients, reducing waste and increasing efficiency.
for Address Hygiene
Key Tools for Address Hygiene
- NCOA (National Change of Address):
- A pre-mailing process that checks addresses against the USPS database of recent moves.
- Identifies and corrects addresses before the mail goes out, ensuring higher deliver-ability rates.
- ACS (Address Change Services):
- A post-mailing tool that updates records after the mail has been sent and flagged as undeliverable.
- Automatically provides new addresses for future mailings, ensuring your database remains clean.
Why Both Tools Are Necessary
- NCOA prevents errors before they happen, ensuring accuracy for the current mailing cycle.
- ACS catches and corrects lingering issues, enabling continuous database improvement.
Together, these tools form a robust address hygiene solution that saves time and money.
Benefits of Implementing Address Hygiene
Address hygiene isn’t just a “nice-to-have”—it’s a necessity for mortgage companies handling high volumes of critical mail. Here are the primary benefits:
Significant Cost Savings
- Reduce wasted postage, paper, and reprinting costs caused by undeliverable mail.
- Optimize mailing budgets by ensuring every piece of mail reaches its destination the first time.
Example: A mortgage company mailing 100,000 monthly statements at $0.55 per piece could save over $5,000 per month simply by improving deliverability by 10%.
Improved Operational Efficiency
- Automate the process of verifying and updating addresses, eliminating manual labor for handling returned mail.
- Enable staff to focus on strategic, revenue-generating tasks rather than fixing address errors.
Enhanced Compliance
- Ensure mortgage statements, notices, and compliance documents arrive on time to meet legal and regulatory requirements.
- Avoid penalties and maintain trust with customers and auditors.
Better Customer Experience
- Timely and accurate delivery of mortgage statements enhances customer satisfaction and trust.
- Avoid customer complaints or confusion caused by missed payments due to undelivered statements.
How VariVerge Simplifies Address Hygiene for Mortgage Companies
At VariVerge, we specialize in providing comprehensive address hygiene solutions tailored to the mortgage industry. By combining advanced technology with proven processes, we help mortgage companies reduce costs, improve efficiency, and maintain compliance.
Seamless Integration of NCOA and ACS
- VariVerge runs NCOA checks before every mailing to verify addresses against the USPS database and flag recent moves.
- Our automated ACS reports update your database after mailings, ensuring continuous address improvement.
Real-Time Updates with VariTrack™
- VariTrack™, VariVerge’s client portal, provides real-time visibility into address corrections and mailing progress.
- Clients can monitor job statuses, access reports, and reduce the guesswork in their mailing processes.
Proven Cost Savings
- Our solutions are designed to minimize returned mail and maximize cost savings.
- Case Study: One VariVerge client reduced undeliverable mail by 25% in just three months, resulting in significant savings in postage and labor.
Steps to Implement Address Hygiene in Your Mortgage Communications
Implementing address hygiene doesn’t have to be complex. Here’s a simple roadmap to get started:
- Audit Your Mailing List:
- Analyze your current mail volumes and identify the percentage of undeliverable mail.
- Integrate NCOA Checks:
- Partner with a trusted provider like VariVerge to validate addresses before each mailing.
- Automate ACS Reporting:
- Use post-mailing tools to identify and correct undeliverable addresses for future mailings.
- Leverage Real-Time Tracking:
- Implement tools like VariTrack™ for live updates on mail statuses and address hygiene reports.
Conclusion: Save Time, Money, and Effort with Address Hygiene
Undeliverable mortgage statements are more than a minor inconvenience—they’re a drain on resources, a compliance risk, and a frustration for customers. By implementing robust address hygiene processes with NCOA and ACS, mortgage companies can save thousands of dollars, streamline operations, and improve communication accuracy.
At VariVerge, we combine cutting-edge technology, like our VariTrack™ portal, with seamless NCOA and ACS integration to ensure your mail always reaches its intended recipient.
Ready to cut costs and transform your mailing operations?
Contact VariVerge today to learn how our address hygiene solutions can save your mortgage company time and money.
Discover how VariVerge’s address hygiene solutions can help you eliminate waste, improve compliance, and streamline your mortgage mailings.
Get in touch with our team today!