What is Loan Register
A loan register is an internal database of maturity dates on loans belonging to a servicer. The loan register shows when the loans are due and lists them in chronological order, by maturity date.
BREAKING DOWN Loan Register
Loan registers are also known as maturity tickers. They are important tools for in-house loan officers, who use them to create follow-up leads. Most servicers have dedicated teams for retention business, and they use loan registers to determine which borrowers to target in mass mailings or phone campaigns.
For servicers, loan registers are essential to generating return business. These registers allow a company to revisit their existing clients at the exact time that they may be thinking of making taking out a new loan. While most loan registers are automated for larger corporations, smaller lenders and broker shops may use a more informal way of keeping track of their pool of aged loans. White boards, spreadsheets and simple calendar systems can help them track when their customer’s loans are coming due.
What is a loan servicer
The loan servicer, or mortgage servicer, is the back-end company that deals with the day-to-day maintenance of an active loan. They apply payments as they are remitted, issue pay off statements as they are requested and issue payments to third parties like hazard insurance premiums and real estate taxes.
When it comes to a mortgage, a borrower’s main point of contact is with the lender. The lenders are the ones that review the requirements for the loan application, verify the borrower meets all qualifications, and obtains any supporting documents that may be needed. Sometimes they will also facilitate the closing process. Once this is complete, the loan and the borrowers move out of the lender's pipeline and into the servicer’s.
The servicer makes sure that all the documentation that has been recorded from the closing is filed and stored as is required by the state the property resides in. They will be also be the ones that send out the monthly payment notice and who receive the payment from the borrower. Unlike the lender, some borrowers may never speak to their servicer.
Also, servicers can change over the course of a loan. A servicer may sell off a portion of the liens they are holding or may go out of business.
While many smaller lenders do not service their own loans, it’s not uncommon for larger lenders to do it all, from lending to servicing, under one roof.