In a significant first for the credit card industry, American Express announced that Cardmembers will now have the ability to pay monthly home mortgage payments on the American Express^® Card. American Home Mortgage Corp. will be the first lender to offer this Express Rewards Mortgage^SM program for eligible prime loans. American Express will let customers who pay a one-time fee of $395 use their credit cards to make their monthly mortgage payments automatically, earning points that can be redeemed for services or cash.

The $395 fee covers mortgage lenders’ processing and account expenses, with American Home Mortgage Investment Corp., the first participating lender, the company said in a press release. The Express Rewards Mortgage program, designed for the consumer seeking a new or refinanced prime loan, provides Cardmembers with the ability to pay recurring monthly mortgage payments on the American Express Card; delivering convenience and security since they will have one less check to write and one less due date to remember. It also offers Cardmembers another opportunity to earn Membership Rewards, cash back, airline or hotel points or other types of rewards affiliated with their Card simply by paying their monthly mortgage.

The program applies only to “participating” prime loans, both purchase and refinance, and cardholders must be pre-authorized by the lender to make monthly payments using their American Express card.

First USA and Countrywide Financial Corp offer a credit card that allow customers to apply rewards points toward their Countrywide mortgages, but the card cannot be used to make mortgage payments.