What Is a Loan Register?
A loan register is a record that lists the dates of maturity on loans that you get for example from GreenDayOnline. The loan register lists when the loan is due and then lists the loans chronologically order by maturity date.
How a Loan Register Works
Loan registers are crucial for loan officers working in-house who utilize them to generate follow-up leads. Many service providers have teams for the retention of business. They utilize loan registers to identify the borrowers they should target with large-scale mailings or phone calls.
For service providers, loan registers are crucial to generating returns in business. They allow companies to talk to their customers when they think about getting a loan. Most loan registers have been automated to accommodate larger companies, small-sized banks, and broker stores. They may utilize a more informal method of tracking the old loans. The use of whiteboards, spreadsheets, and basic calendar systems can assist them in keeping track of the dates when loans from their customers are due.
An internal loan database is a database that contains maturities of loans that belong to a service, listed in chronological order, sorted by the date of maturity.
Servicer vs. Lender
A loan servicer, also known as the mortgage servicer, is the company at the back end responsible for the day-to-day management of an active loan. It processes payments when they are made, sends the payoff statement when required, and makes payments such as hazard insurance premiums or real estate taxes to third parties.
In the case of the mortgage process, the borrower’s primary communication is with the lender. A lender will review the conditions for loan applications, confirm that the applicant is qualified, and gather any required documents. Sometimes, lenders will assist with the closing process. After completing the closing process, the loan and customers are released from the lender’s pipeline and move into the servicer’s pipeline.
The servicer will ensure documents taken from the closing have been kept and archived as required by the state at the property’s location. The servicer is also likely to send the monthly payment notice and then receive the payment from the creditor. Unlike the lender, some borrowers will never talk with their servicer. Servicers can alter their position throughout a loan if they sell a part of the liens they own to a different servicer or cease to operate. Although many smaller lenders do not manage themselves, large lenders typically manage everything from lending to servicing all under one roof.