What Is a Small Servicer and Why Does It Matter?
Servicing companies that meet one of the following criteria are considered small servicers:
Servicers that service 5,000 or fewer mortgage loans where the servicer is the creditor or assignee for all of them
Nonprofit servicers, provided that they are designated as a nonprofit organization or entity for tax purposes, that service 5,000 or fewer mortgage loans and are the creditor for all of those loans
Servicers who are State Housing Finance Agencies
Small servicers may be exempted from certain restrictions imposed by the Consumer Financial Protection Bureau. For example:
Periodic statement provisions
Early intervention provisions
Continuity of contact provisions
Certain loss mitigation provisions
Certain general servicing policies, procedures and requirements provisions
- 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 Are the Parties Involved in the Loan Servicing Process?
- 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?
- How Is the Quality of Mortgage Servicing Overall?