How to Become a Loan Servicing ManagerCareer News January 18, 2014
If you are an organized person and a person who is motivated to reach out to new responsibilities then don’t sell yourself short—you could be management material. The loan servicing department of a bank or lender needs strong leaders who are good with numbers and in communicating with others.
Loan servicing generally refers to the management of loan mortgages. Mortgage loan services fall under the direction of the Department of Financial Services. In many states, applicants must register and pay a fee to partake in mortgage loan servicing. Background reports and background checks are also required in most states.
Duties Associated with Management
The loan servicing manager is the one who manages a loan once a deal has been agreed upon, and the customer begins making payments. Sometimes the management is assumed by the company that issued the loan, while, in other cases, the rights to manage them are sold to a separate company.
The servicing loan manager performs a variety of duties associated with the repayment of the loan. The loan servicing manager sends statements to the borrower, collects payments and handles the escrow accounts for homeowners’ insurance and taxes. If the borrower neglects to provide adequate insurance for the asset, the servicing manager is allowed to buy what is commonly called “forced placed insurance” on the borrower’s behalf.
Delinquent Accounts and Your Job
The loan servicing manager is also responsible for undertaking the task of following up on delinquencies. If the borrower fails to make one or more payments, the servicing manager is entitled to charge late fees. In cases of severe delinquency, the loan servicing manager handles the filing process for foreclosure.
Adequate knowledge of credit protection services within state and federal guidelines are needed to become a loan servicing manager. When overseeing collection and foreclosure filings, the servicing manager must pay attention to all details of the contract to ensure they remain in compliance with federal and state regulations.
Go Back to School to Gain an Edge
An associate’s degree in accounting or economics, along with several years of experience in collections is usually sufficient for acquiring a career as a loan servicing manager. Most servicing companies desire candidates who have a thorough background in mortgage loan products and loan servicing. Excellent written and oral communications are necessary for an effective career as a loan servicing manager. The manager needs to be tactful, considerate, and able to make their clients understand the nature of their financial transaction clearly.
The salary of loan servicing managers is dependent on the company they are working for and their geographic, but the average pay is $46,000 a year, with the 75th percentile receiving a salary of $66,000 a year. Employment of loan servicing managers is expected to grow by ten percent by the year 2018, which is about average for all occupations.
This is a growing market and one that you can join if you are willing to make a move. Education is not a risk, but a commitment that will take you places in life.