Loan Servicing

Loan servicing is the process of collecting payments from borrowers and managing the loan account. It includes sending out bills, accepting payments, applying payments to the loan balance, tracking interest and fees, and handling late payments and defaults. Loan servicing is typically handled by a third-party company that is hired by the lender.

There are a number of different tasks involved in loan servicing. These tasks include:

* Sending out bills and collecting payments from borrowers.
* Applying payments to the loan balance.
* Tracking interest and fees.
* Handling late payments and defaults.
* Communicating with borrowers about their loans.
* Handling loan modifications and foreclosures.

Loan servicing can be a complex and time-consuming process. However, it is an important part of the lending process and helps to ensure that loans are repaid on time and in full.

Here are some of the benefits of loan servicing:

* It helps to ensure that loans are repaid on time and in full.
* It can help to reduce the risk of default.
* It can help to improve the borrower's credit score.
* It can help to keep the lender's costs down.

Loan servicing is an important part of the lending process and can help to ensure that loans are repaid on time and in full.