In one sentence
The ongoing administration of a loan after closing: collecting payments, managing escrows, testing covenants, and maintaining the record for the life of the loan.
The longer version
Servicing is where a loan spends nearly all of its life. Payment processing, escrow analysis, reserve releases, covenant testing, and borrower requests all run for years after the closing that gets all the attention.
The quality of the closing file is tested in servicing. A complete, organized handoff makes covenant tests and audits routine; a scattered one makes each of them an investigation.
In Prodeal
Servicing teams work from the deal's organized file instead of chasing the closing team, and TruStone cut daily servicing status email 75% running this way.
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