RC_GO_100.5 Loan Servicing Basics
| Option | Price |
| Member | $0.00 |
| Non-Member | $100.00 |
Mortgage bankers generate substantial income by servicing loans on behalf of investors. In this course, we will learn about the various functions of servicing and how loan servicing can be a valuable revenue-generating asset. We will also learn about the goals and structure of a loan servicing division, the risk associated with loan servicing, and the regulatory environment.
Loan Servicing Basics begins with an overview of the major areas and goals of loan servicing as well as ways through which loan servicing makes money, including servicing fees and float income.
From there the course looks at the structure of the department and the roles of the major functional areas of a loan servicing group.
These include:
- Customer Service. This group is comprised of new loan setup, the call center, complaint resolution, payoffs and assumptions, and special products.
- Escrow Administration. This department handles the borrower's escrow accounts, computes the annual escrow analysis, and ensures the property taxes and insurance are paid.
- Default Administration. This area of loan administration deals with foreclosures, collections, and loss mitigation.
- Mortgage Accounting. This division is responsible for cash processing, compliance and auditing tasks, as well as investor accounting.
- Valuation and Trading. This team determines how a servicing asset is valued and traded by determining the value of the mortgage servicing rights for either purchase or sale.
- Compliance. This team ensures that all laws and regulations governing the servicing team are complied with and that audits are performed as necessary.
Sprinkled through the course are interviews with an expert in loan servicing for real world information and insight.
Note: The terms "loan servicing" and "administration" often are used interchangeably. Within the mortgage banking industry both terms describe the administrative and financial tasks associated with the daily management of closed mortgage loans. Regardless of how the function is titled within your organization, the loan servicing function handles all activities related to the loan once the loan has been closed.
This is a single-family/residential course.
Seat time approximately 2.5 hours.
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