Loan Servicing Agreements

A Loan Servicing Agreement is a contract between a lender and a loan servicer, the company responsible for managing a loan after it is issued. The servicer handles tasks like collecting payments, maintaining account records, and communicating with borrowers. They ensure that the loan terms are followed and assist borrowers with questions or issues. This agreement outlines the servicer's responsibilities, fees, and reporting obligations, ensuring that both the lender and borrower understand how the loan will be managed throughout its term. Essentially, it ensures smooth operations and effective communication regarding the loan.