New Launch - India Real Estate Report 2026.

What is a Loan Servicing Process?

Loan Servicing Process Loan servicing process is the ongoing administration of a mortgage loan after origination, including collecting monthly payments, managing escrow accounts for taxes and insurance, handling borrower inquiries, and initiating foreclosure if borrower defaults on loan obligations.

Key Activities

  • Collecting monthly principal and interest payments from borrower
  • Managing escrow accounts for property taxes and insurance premiums
  • Applying payments to correct accounts and ledgers
  • Handling borrower inquiries and account modifications

Servicer Responsibilities

  • Forwarding payments to loan owner or investor
  • Maintaining accurate loan account records and statements
  • Initiating foreclosure proceedings when borrower defaults
  • Administering loan modifications or forbearance programs

Loan servicing administers mortgages after origination through payment collection, escrow management, borrower support, and foreclosure initiation when borrowers default on obligations.

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