Loan servicer

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A loan servicer is a public or private entity that handles the following tasks:

• Collecting, monitoring and reporting loan payments
• Handling property tax
• Handling insurance escrows
• Foreclosing defaulted loans
• Handling late payments and other delinquencies
• Remitting payments

A loan servicer may also assist in loan origination

[edit] Servicing Fee

A servicer earns a servicing fee in return for performing the administration functions described above, typically a percentage of the loan's Unpaid Principal Balance

[edit] Sub Servicer

In some cases a servicer outsources some of the administrative functions to another party, the Sub Servicer, while retaining financial responsibility

[edit] Servicer License

In the United States of America, a Servicer needs a license