CMB- Loan Administration

70 cards | Total Attempts: 188 | Created by mdunn7 | Last updated: Dec 1, 2016 | Total Attempts: 188

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Loan Administration

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Cards In This Set

Front	Back
Loan Administration	Administration and financial tasks associated with daily management (servicing) of the servicing portfolio throughout the life of the loans in the portfolio.
Servicing Agreement	Used when servicer services loans on behalf of an investor Contractual agreement between the investor and a loan administrator to service mortgage loans on behalf of the investor creates a tri-party arrangement between the borrower, servicer, and investor
A subservicer...	Perform loan servicing tasks does not own the servicing rights assumes operational risk paid by servicer for performance of tasks
Can a subservicer use the servicer's brand name? and if so, what would be the advantage?	Yes, a subservicer may use the servicer's brand name. The advantage would be to ensure consistency with customers, so that the servicer retains its relationship with its customers.
Why servicer would outsource to a subservicer	Complications with particular type of loan reduction in servicing labor force might need special expertise
Ways to increase servicing income	servicing revenue buying and selling servicing rights
Does a high-interest loan have the same servicing fee rate as a low-interest loan?	Yes
Generally the amount of servicing fee collected	25 to 50 basis points, computed on the outstanding principal balance of each loan in the servicing portfolio
Servicing income depends more upon the size of the __________ that the ____________used to calculate the servicing fee.	Loan, percentage
Two things that might affect a mortgage banker's servicing profitability	foreclosures real estate owned (REO)
No-bid	An option to open to VA where VA opts to pay the guaranty rather than take possession of the property and pay the full amount of the loan
Why would VA take the no-bid option	VA takes such an action when it would lose less by doing so that by taking possession and selling the property. VA must exercise this option when it is in the government's best financial interest.
What is a MBS?	Mortgage-backed securities, an investment instrument backed by mortgage loans as security.
Sources of servicing revenue	Servicing fees float income Ancillary fees
What is the mortgage lender's largest source of income?	The servicing fee. Mortgage bankers service loans owned by investors. The bankers collect a per-loan fee (servicing fee) from the loan's investors. The servicing fee is usually a fraction of one percent of the outstanding principal balance of the loan. The servicing fee is calculated each time a payment is made and is deductible from the total payment due the investor. The actual fee is regulated by the investor according to loan type.