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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