The Importance of In-House Loan Servicing
By managing loan servicing in-house, Slatt Capital has greater control over the entire life of the loan. We are able to customize loan servicing processes, adapting them to meet specific requirements and quickly respond to changing market conditions. This flexibility allows for more efficient and effective servicing, resulting in a better experience for both our borrowers and lenders. The following is an overview of how quality loan servicing can positively impact our clients.
What Loan Servicing Entails
- Oversight of a loan after it closes.
- Managing loan payments, escrows, and reserves.
- Collecting and analyzing annual property financial data.
- Completing annual property inspections.
- Facilitating property tax and insurance payments and monitoring.
- Tracking loans for symptoms of default.
- Managing any loan events, including assumptions and transfers.
- Processing service requests for borrowers.
- Engaging in strategic consulting with lenders and borrowers.
Why Loan Servicing is Important to Borrowers
- Deep relationships between borrowers and lenders are built over time and are often influenced by the servicing connections that maintain these relationships.
- Lenders rely on the servicer for recommendations on and processing of post-closing events such as lease approvals, transfers, assumptions, and estate planning matters.
- Servicers with deep lender relationships have access to the key people responsible for making critical decisions, saving borrowers time and the frustration of navigating complex organizations. Slatt Capital’s servicing team is able to provide our borrowers with guidance and advice on how their lender would look at a specific request or need.
Importance of Loan Servicing to Lenders
- Servicers with strong borrower relationships can prevent problematic loans and mitigate losses through reporting and consultation.
- Servicers have an established network of contacts able to deal with issues or requests that may surface during the life of a loan.
- If problems do occur, an experienced servicer has access to vetted specialists (attorneys, investment brokers, contractors, environmental consultants) who can respond quickly, competently, and in a cost-effective manner.