INTERIM SUBSERVICING
MAINTAIN CONSISTENCY AND REDUCE RISK
If a credit union is active in the secondary market and holds loans for sale for a future date, LoanCare’s interim subservicing program helps maintain servicing continuity during this “loan sold servicing released” process. LoanCare will perform the following functions on behalf of the credit union:
Pre-sale
- Send member welcome letters
- Load loans into subservicing system
- Respond to member calls/inquiries
- Apply payments received
- Determine payment destination
- Support administration of multiple purchasers/investors
Post-sale
- Receive and review seller/client purchase advice
- Coordinate loan transfer to destination purchaser/investor
- Assist in completing agency transfer forms
- Pay open escrow items and provide investor fund reporting, as applicable
- Send goodbye letters to members
- Facilitate escrow account fund transfers
- Provide monthly purchase advice status reports to sellers/clients
- Facilitate monthly payment remittances and reporting
Post-release
- De-convert loan from subservicing system
- Respond to purchaser/investor calls and inquiries
- Prepare and mail year-end 1098 forms
THE LOANCARE INTERIM SERVICING ADVANTAGE:
- Lower cost to manage service released process
- Reduce operational and compliance risk
- Reduce first payment defaults
- Provide smooth transfer for members
- Add flexibility to sales process, allowing better execution in the secondary market
- Complete year-end reporting
- Adhere to a simple fee structure covering all service