Information on this page helps MBA members in their loan administration activities. Servicing or loan administration begins after the mortgage banker closes the mortgage loan. Tasks associated with this function include the collection of mortgage payments, investor remittance, escrow administration, quality customer service, default management, loss mitigation, liquidations and servicing asset management.

Loan administration is a vital part of mortgage banking, since the mortgage banker often derives a large part of its net income from its loan administration or servicing operation. The long-term income stream generated from servicing represents a valuable asset that a mortgage banker may buy or sell within the constraints set by the investors and other mortgage entities (e.g., Fannie Mae, Freddie Mac, FHA, VA and Ginnie Mae.) Therefore, the mortgage banker conducts its other mortgage banking activities with an eye toward creating value from servicing.

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