What Are the Parties Involved in the Loan Servicing Process?
There are four main parties involved in the loan servicing process: the borrower, the lender, the loan holder, and the servicer.
Initially, there is a contractual relationship between you (the borrower) and the financial institution who lent you money (the lender). Sometimes, the lender will sell your loan to a third-party investor (the loan holder), who becomes your new creditor and is the person or institution to whom you have to make further payments to repay the loan. Now, since managing the loan on a day-to-day basis requires significant time and effort, the lender or loan holder may outsource this task to a loan servicer, who administers your loan on the lender or loan holder's behalf for a certain fee.
The roles of lender, loan holder, and servicer may all be filled by the same financial institution.
- What Is Loan Servicing?
- Which Servicing Companies Are Considered to Be the Best?
- What Happens After I Get the Loan?
- What Happens if My Mortgage Is Sold to a New Owner and the Mortgage Servicer Changes?
- What Does Loan Servicing Include?
- What Type of Entities Are Mortgage Servicing Companies?
- Is There Any Difference Between a Bank and a Non-Bank Mortgage Servicer?
- What Are the Differences Between a Mortgage Lender and a Mortgage Servicer?
- How Do Mortgage Servicers Make Money?
- What Is a Small Servicer and Why Does It Matter?
- How Is the Quality of Mortgage Servicing Overall?