Find Best Real Estate Note Servicing Companies Near You

Get connected with reputable real estate note servicing companies in a few clicks!


National Directory of Note Servicing Companies


National Directory of Note Servicing Companies

Loans of all types require a significant amount of maintenance. Loan servicing specialists can be especially helpful for home seller-financed contracts and personal loans. Not only will a note servicing company be able to streamline loan payments, but they will also create a barrier between the lender and the borrower to depersonalize the payment process. This way they lessen the risk of the borrower requesting personal favors. Enforcing late payments or getting recourse for a loan default can be difficult, especially if an investor has built a personal relationship with the borrower. HouseCashin maintains an up-to-date directory that lists the loan servicing companies in your local area to ensure that you can find a top-rated professional to manage your loans.

Frequently Asked Questions

A note servicing company is an outsourced professional service provider that manages loans and collects payments from borrowers. While a loan servicing company won’t actually hold the notes on their books, they work as a borrower-facing entity to represent the actual owners of a loan.

Loan servicing companies manage everything related to the administration of a loan, including borrower payments (aka note collection), late fees, delinquent accounts, escrow calculations, loan documentation, payoff schedules and borrower inquiries. For federal loans, including student loans and many home loans, note servicing companies also help lenders comply with the myriad of obligations that lenders have. Loan servicing companies will also manage other types of direct loans originated by individuals, including seller financed loans, land contract loans, personal loans, and will service mortgages made as private loans. For example, a home seller might not want to personally handle the obligations and headaches related to an owner-financed contract. Also, as many landlords who have personally managed properties know, personal relationships can make managing the lender/borrower relationship difficult. Loan servicing companies also service loan covenants. For example, a borrower of a family mortgage loan that has a 1-year occupancy clause might have someone sent by the loan servicer to check whether they were fulfilling that loan obligation. A private lender will often have several bespoke covenants for seller-financed property that are difficult to enforce without a professional. Finally, loan servicing companies are invaluable when a borrower goes into default. Ensuring that a lender has maximum recourse to recover their investment takes a competent professional, and loan servicing companies will be able to refer lenders to experienced attorneys who specialize in loan defaults.

Loan servicing companies will usually charge annualized fees of .25%-.5% of the total loan balance. While these rates are typical for a mortgage loan, including an owner-financed note, smaller personal loans, especially those with specific covenants created by the lender, will often cost the lender a bit more per loan. A complex seller-financed arrangement will require that a loan servicing company fulfills far more obligations than a boilerplate mortgage note. Sometimes, loan servicing companies will charge new clients a one-off fee per loan. When underwriting a loan, the expected cost of loan servicing is usually baked into the interest rate that a lender will charge. It’s almost always wise for an originator to get quotes from a loan servicing center in your location if you’re new to lending.

The federal government regulates all mortgage home loans, including the loan servicing component. Borrowers are able to bring complaints against mortgage loan servicing companies directly to HUD, which may impose penalties on mortgage servicers who have incorrectly handled borrowers. These complaints are usually for smaller disputes, such as late penalties or escrow calculations. For larger complaints, many lawyers are available to borrowers of mortgages pro-bono. A lender should choose their loan servicing company carefully. The government does not actively regulate loan servicing for personal loans and most other non-mortgage loans. Instead, the courts are the most common avenue for borrower or lender recourse. If a loan falls into default, a loan servicer will suddenly be considered a debt collector by law, and will be responsible to uphold all of the requirements for fair debt collection. Loan servicing companies will usually communicate with a lender to arrange for a note in default to be sent to a collections agency, instead of attempting to handle collections themselves.

A mortgage subservicer is essentially a remote, bulk provider of mortgage loan servicing. A subservicer performs all of the compliance, admin and payment activities for a mortgage loan on a monthly percentage fee. After originating a loan, a mortgage lender has the option to either sell the loan in the secondary market as “service retained” or “service released.” For service retained loans, an originator will be paid around .25% of the outstanding loan to retain servicing obligations in addition to other fees. A mortgage subservicer can provide all of the necessary loan servicing obligations to allow a mortgage originator to sell a mortgage note as service retained and receive the extra fee. Because mortgage subservicing companies have a high level of automation and economies of scale, they can offer fees that are usually much lower than your local loan servicing center. The downside to this is that they usually only accept mortgage loans (e.g. personal loans aren’t serviceable by most subservicers). Mortgage subservicers are also excellent at providing portfolio reporting for a pool of mortgage loans. Understanding the existing escrow balance, late payments, and delinquencies are invaluable to not only properly pricing a portfolio, but also in being able to resell that portfolio.

Reverse mortgage servicing simply means loan servicing for a reverse mortgage, where a homeowner’s equity is used to provide payments to the borrower. Just like with any other mortgage, a reverse mortgage lender has certain obligations to a borrower that need to be fulfilled. Because the borrower is receiving payments during the service period of a reverse mortgage instead of making them, there tends to be far more inquiries and requests from the borrower that a servicer will have to field than with a conventional mortgage.

Are You a Credible Note Servicer?

We are always looking for reputable real estate note servicing companies for our national preferred vendor directory. If you own or work for a credible note servicing company that offers private loan servicing services, apply to get listed in our popular vendor directory!