Loan Services
Loan servicing is a function carried out by the bank or financial institution that issued the loan, a third-party vendor, or a company that specializes in loan servicing.
Loan servicing functions include collecting monthly payments, paying taxes, and other aspects of the loan that occur from the time the proceeds are dispersed until the loan is paid off.
Securitization of loans made loan servicing less profitable for banks.
Loan servicing is now an industry in and of itself and companies are compensated by receiving a small percentage of loan payments.