The method, by which the sub-servicing firms or the mortgage banks collect the interest payments and principals timely from the borrowers, is called loan servicing. The levels of services will vary depending on the kind of loan as well as the terms and conditions that have been negotiated between the investor seeking services and the firm that will provide those services.
The field of loan servicing is a specialised profession. It requires proven processes, systems, and the experienced professionals who will understand your exact business needs. The following services are provided by most of the loan servicing companies:
* They manage portfolios.
* Modified collection services.
* Insurance fulfilment tracking.
* Backup, primary and master servicing.
* Debt protection and cancellation programs.
* Auto/motorcycle/ boat/ RV loans.
* Equity/ home equity loans.
* Consumer loans that is unsecured.
* Different kinds of personal loans.
* Small business loans.
* They also provide structured settlements as well as other facilities.
Whether you choose ASP or better known as Application Service Provider or BPO that is also known as Business Process Outsourcing model or a mixture of both, they are able to modify their high end systems to meet your requirements and needs. They will provide thorough, security level portfolio reporting and information so that you can supervise your portfolio as actively as you need.
Besides handling all these responsibilities, the loan servicing companies also provide services when it comes to complaints handling.