November 7, 2019
In lending, loan servicing is time and resource-intensive. While many companies have the financial resources and accounting expertise to handle loan servicing internally, the record-keeping and compliance burden along with the need for better borrower-facing technology makes loan servicing costly and detracts from their core business.
Knowing what servicing services your institution needs can be complicated. With more than a decade of loan servicing experience and $26B under management, we want to make loan servicing easier.
Primary servicers have one primary function– pun, intended. They provide day-to-day administration and management of consumer loans and are in direct contact with your borrowers. Regardless of the consumer asset class, you will need a primary servicer in place to manage your borrowers’ accounts, process payments, facilitate repayment plan alternatives and communicate directly with your borrowers.
Often, the primary servicer is the first point of contact for borrowers. Make you’re your primary servicer shares your institution’s values and treats all borrowers with empathy and respect.
When primary servicing just won’t cut it anymore, you may need to enlist a different kind of servicer.
Master servicers’ are typically used when a loan is delinquent or in default. The master servicer is responsible for getting borrowers’ current on their loans. A skilled master servicer uses a variety of collections management strategies to prevent default.
Specialized servicers’ are brought in when an asset becomes nonperforming and is a certain number of days past due (DPD). Sometimes default is unavoidable, and a specialized servicer will handle loans through restructuring, foreclosure or termination.
Sometimes even your secondary servicer needs a back-up. If there are any issues or events of default with the primary or master servicer, a back-up servicer would step in to continue servicing the loan portfolio.
At Goal Solutions, our end-to-end loan management solution ensures clients have the right servicing capabilities in place at every stage of the loan portfolio lifecycle. Our clients trust us to treat their borrowers with empathy and respect while also making the most of their investments.