Servicing

Servicing, in a financial context, refers to the ongoing management and administration of a loan or debt. This includes activities such as collecting monthly payments, managing escrow accounts for taxes and insurance, updating account information, and ensuring the borrower complies with the loan terms. Servicing ensures the loan remains in good standing and that both the lender's and borrower's obligations are met throughout the loan term. It can be handled directly by the original lender or by a specialized servicer assigned to manage multiple loans efficiently and professionally.