Online extra on challenges facing the servicing industry: Tough times for servicers

"Servicing is facing all sorts of challenges that previously it really did not have to deal with before"

The American dream turns into a nightmare

Once loans are originated they are retained, sold or securitized, and all these loans then need to be serviced. Sometimes they are serviced by the originator or by another entity for a fee. The servicer is responsible for collecting and posting payments, paying taxes and insurance, managing escrows, reporting to investors, etc. A good servicer plays a key role in lowering default rates, increasing loss-mitigation opportunities, and shortening default timelines.

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