Loan Servicing for Private & Hard Money Lenders

What Services Does a Loan Servicing Company Offer?

Most companies offer a wide range of services that cover the full life-cycle of a loan including:

• Sending monthly statements to the lender
• Keeping a record of balances and payments
• Collecting regular payments from the borrower
• Taking care of taxes and insurance
• Managing impound funds and escrow
• Reducing the risk of loan delinquency
• Controlling delinquent loans

Should I Hire a Loan Servicing Firm?

While the lender can carry out the required duties, it might not always be the best option.

Here’s why it might be a good idea to hire the services of a loan servicing firm:

Helps Save Time

Loan servicing can keep your team very busy, preventing them from concentrating on other tasks. By outsourcing loan servicing, you or your team will have fewer worries.

Decreases Costs

Loan servicing, both commercial and residential, is fraught with complex and minutiae regulatory compliance including foreclosure filings, federal compliance reports, payment letters, phone calls, etc.

This can be too much to handle for one person and you may have to hire additional staff to ensure all compliances standards are met, which can increase operational costs.

You can reduce the cost by hiring a third-party to take care of things. The firm will perform a variety of tasks on your behalf such as setting schedules, sending alerts to borrowers, and applying charges on missed or late payments.

Increases Revenue

A loan servicing firm can reduce business risk including bad debts. They can give a boost to your cash flow and help you avoid losses.

Failing to collect money on time is a major concern for many businesses. A loan servicing firm can help you identify difficult situations so you have enough time to react before payments become difficult or impossible to collect.

Reduces the Risk of Errors

Working with a loan servicing firm can reduce the risk of computational errors. This is very important because even a small calculation mistake can cause impeccable damage to your business.

Loan servicing agents are highly professional and experienced at handling even the most complex tasks. Plus, companies use professional-grade software that are highly efficient and reliable.

Such tools can be very expensive for small lenders or individuals to afford, hence it’s best that you seek the services of a professional.

Who Is Loan Servicing For?

Loan servicing is for everyone from private lenders to mortgage brokers. However, the set of services may change.

For example, companies catering to brokers usually focus on attracting more clients and closing a larger number of deals while attending to the needs of the business.

On the other hand, for private lenders, companies usually concentrate on simplifying investments and maximizing profits while helping lenders find a foothold and grow their business.

Loan servicing firms deal with a variety of loans including residential loans, bridge loans, impounded loans, commercial loans, multi-lender loans, construction loans, graduated term mortgages, and section 32 loans.

At Private Lender Link, we aim to help you make the right decision. We have covered some of the best loan servicing firms above. Compare your options and make sure to pick one that meets your standards and requirements.