Loan Register

What Is a 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 records them in sequential order by maturity date.

How a Loan Register Works

Loan registers are otherwise called maturity tickers. They are important devices for in-house loan officers, who use them to make follow-up leads. Most servicers have dedicated groups for business maintenance; they use loan registers to determine which borrowers to target in mass mailings or telephone crusades.

For servicers, loan registers are essential to generating return business. These registers permit a company to return to its existing clients at the specific time that they might be thinking of taking out another loan. While most loan registers are automated for bigger corporations, more modest lenders and mortgage broker shops might utilize a more informal approach to keeping track of their pool of aged loans. White boards, bookkeeping sheets, and simple calendar systems can assist them with tracking when their clients' loans are coming due.

A loan register is an internal database of maturity dates on loans belonging to a servicer listed in sequential order by maturity date.

Servicer versus Lender

The loan servicer, or mortgage servicer, is the back-end company that arrangements with the everyday maintenance of an active loan. It applies payments as they are dispatched, issues payoff statements as they are mentioned, and makes payment —, for example, hazard insurance premiums and real estate charges — to outsiders.

With regards to a mortgage, a borrower's main point of contact is with the lender. A lender surveys the requirements for the loan application, confirms that the borrower meets all capabilities, and obtains any supporting necessary records. Some of the time a lender will likewise work with the closing system. When this is complete, the loan and the borrowers move out of the lender's pipeline and into the servicer's.

The servicer ensures that all the documentation that has been recorded from the closing is recorded and stored as required by the state in which the property lives. The servicer will be likewise be the person who sends out the regularly scheduled payment notice and gets the payment from the borrower. Dissimilar to with the lender, a few borrowers might very well never address their servicer. In any case, servicers can change throughout the span of a loan in the event that they sell off a portion of the liens they are holding to another servicer or on the other hand assuming they leave business.

While numerous more modest lenders don't service their own loans, it's normal for bigger lenders to do everything, from lending to servicing, under one rooftop.