The Commercial Property Assessed Clean Energy [C-PACE] program presents a unique chance for businesses and financial institutions to get involved in renewable energy projects. It also offers a compelling opportunity for governments to support green energy initiatives and drive local economic activity by leveraging private financing.
While there are many reasons to adopt a C-PACE lending program, the intricacies involved make servicing the loans a challenge. Fortunately, administrators can realize significant benefits by engaging a partner that specializes in C-PACE servicing.
Outsourcing C-PACE Loan Servicing Can Reduce Operational Costs
A loan servicing partnership helps administrators reduce their operating costs compared to servicing loans in-house. One of the most profound ways that outsourcing reduces costs is the hiring and maintenance of staff.
C-PACE loan servicing requires well-trained staff to answer borrower questions, operate specialized technology, collect past-due balances, and process payments. Experienced loan servicers have already invested in cultivating employees with the right skills and knowledge to handle the complexities of C-PACE loans. On the other hand, hiring and training staff for in-house loan servicing requires significant expense and effort that could be better used to support other strategic priorities.
In addition to hiring the right people, the loan servicer accepts the responsibility of reporting, providing technology, performing ongoing training, and maintaining office space. Outsourcing frees organizations from these added costs and allows them to operate with a smaller budget while realizing better outcomes.
A Qualified Loan Servicer Simplifies Billing and Payment Collection
Specialized C-PACE servicers have a wide breadth of knowledge and experience that enables them to tailor solutions to comply with local legislation. This expertise is particularly important in billing and payment collection, where rules can vary significantly between states and sometimes between counties.
For example, some jurisdictions require bills to be sent directly to borrowers. In these locations, the servicer can take the work of both billing and payment collection off the administrator’s plate.
Other areas integrate billing and payment receipt into tax collection activities. A loan servicing partner provides vital support in these locations by monitoring the progress of payments, managing custodial accounts, and dispersing fees to multiple parties.
A Loan Servicing Partnership Improves Data Reporting
The right loan servicing partner can greatly reduce the effort needed to keep accurate, complete records. They have systems in place to facilitate document storage while complying with security and retrieval requirements – minimizing compliance risk for administrators.
A servicing partner also collects data about the loan portfolio, such as assessment schedules, which parties should be paid, fee disbursements, delinquencies, and borrower characteristics. They consolidate this information into easy-to-understand reports that provide the crucial data that administrators need to improve their business. Further, the best loan servicers can produce custom reports for specific purposes – such as keeping board members informed and sharing information with government officials.
C-PACE Loan Servicers Have Specialization and Compliance Experience
C-PACE loans operate with unique compliance and reporting requirements, and a servicer experienced with these types of loans is well-versed in the intricacies. Administrators can leverage this knowledge when establishing a new C-PACE program, managing an existing program, and expanding their operations.
When implementing a C-PACE program in a new area, a knowledgeable loan servicer is the key to avoiding common pitfalls and establishing efficient processes. A servicing partner can share crucial information and best practices from their past experiences in meetings with program administrators, city attorneys, and local government officials.
Along with the initial setup, the servicer can provide ongoing compliance support to help administrators avoid headaches and bad press associated with regulatory mishaps. Further, an experienced loan servicer can provide guidance to organizations seeking to optimize their C-PACE processes.
For example, administrators who have seen a recent influx of C-PACE loans in a particular area may find that their current processes do not easily adapt to a larger portfolio. The right partner can recommend ways to minimize their workload and promote a positive borrower experience.
Specialized C-PACE Loan Servicing Improves Efficiency and Scalability
A partnership with a well-established loan servicer allows administrators to take advantage of processes optimized over decades. These proven methods utilize fewer resources than an organization would need to expend to create the same outcomes.
Efficient loan servicing translates to faster processing times, enhanced borrower service, and simplified reporting – compared to in-house alternatives. These improvements allow administrators to scale their operations seamlessly without the added work of managing laborious servicing tasks.
Overall, administrators can save time and money when they partner with the right C-PACE loan servicer. These savings allow them to minimize effort for their staff, grow their loan portfolio, and serve their community – all while managing complex compliance requirements.
Improve Operations With C-PACE Loan Servicing from AmeriNat
At AmeriNat, our team helps governments and administrators across the country operate efficiently through loan servicing and comprehensive C-PACE management solutions. When you work with us, we take the work of assessment enrollment, payment receipt, reconciliations, and payoff calculations off your plate. Our team even handles direct billing of assessments to the property owner or borrower in accordance with local legislation.
We have spent decades operating in the highly regulated loan servicing industry. This depth of past experience has allowed us to adapt our processes to provide outstanding borrower support along with strong partnerships.
To learn more about our services and get started today, contact us.
