Finance

What is 'loan servicing' in Oregon mortgage lending?

AThe origination and underwriting of a new loan
BThe administration of a loan after it is made — collecting payments, managing escrow accounts, handling delinquencies, and reporting to the borrower and investors✓ Correct
CThe appraisal of the property securing the loan
DThe lender's customer service department

Explanation

Loan servicing encompasses all activities related to administering a mortgage after origination: collecting monthly payments, applying them to principal and interest, managing escrow impound accounts for taxes and insurance, providing annual statements, handling delinquencies, and overseeing the foreclosure process if necessary. Many Oregon lenders sell the servicing rights to specialized servicers while retaining ownership of the loan.

Related Oregon Finance Questions

Practice More Oregon Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Oregon Quiz →