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