Mortgage Loan Servicing and Subservicing: An Industry Overview
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Authors
Coady, Shannon L.
Issue Date
1998
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
The purpose of this project is to give an overview and an insight into the
mortgage loan subservicing industry. An emphasis is placed on the significance
of the industry, its history, external and internal factors, and its future path.
Information to facilitate the project was obtained through various sources.
Information gathered over a summer internship position aided in the general
understanding of the industry. Fellow colleagues also gave an insight as to how
different pieces of the industry fit together. The majority of the information
collected was from Mortgage Loan Servicing by The Institute of Financial
Education. In addition, articles from the United States General Accounting
Office and The Practical Real Estate Lawyer gave detail information about the
future of the industry.
The mortgage loan subservicing industry exists because it is extremely
efficient and cost effective. The industry dates back to the 18th century and
throughout the years has been continually evolving. Each time period presents
new difficulties and changes. Government programs such as FHA loans and VA
loans, along with the secondary market, have been significant in this evolution.
The components of a subservicing company are also important in understanding
the industry as a whole. Each department has a very specific roll in a mortgage
loan subservicing company. This industry is continuing to evolve as the
secondary market grows and new types of loans are introduced.
The findings of this project are significant. Mortgage loan subservicing is
a very specialized industry that performs an important service for a number of
different types of clients. The industry has continued to change over time and
has evolved with the changing economy. FHA loans, VA loans and the secondary
market are responsible for the large expansion of the industry and the emergence
of the modem-day subservicing company. The departments within the mortgage
loan subservicer have also become very specialized and significant in the overall
loan servicing. Service transfers and new types of loans continue to change the
industry. Mortgage loan subservicers, however, have responded and adapted to
the new servicing demands and will continue to do so in the future.
Description
iv, 56 p.
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