The Importance of Retained Servicing


Retained servicing is a benefit we take a lot of pride in here at Colonial, but what is the value it brings to our customers? What a lot of mortgage borrowers might not know is that many mortgage companies choose to sell the servicing rights to the loan after closing. Sometimes it happens directly after closing and other times it happens multiple times after the loan has closed. This often causes confusion for the borrower. Imagine you’ve purchased a home and have to be constantly on the lookout to know how to make a payment and who to contact should you have any questions.

That’s why Colonial is proud to retain servicing on more than 98 percent of the loans we originate. That means that when you have questions about your mortgage payment, you can rest easy knowing that the same folks that you worked with to secure your mortgage financing are the same ones you can contact to answer questions you may have.

Retained servicing provides consistent, reliable standards and care for our customers.

“At Colonial, we believe that our relationship with our customers should last long after closing,” said David Motley, Colonial President. “Mortgage Servicing – the act of collecting payments for principal, interest, taxes and insurance, accurately accounting for those payments and then distributing them to investors, taxing authorities, and insurers – is a complex business and confusion often occurs when the service is transferred from one servicer to another as happens often in the market today. By retaining the mortgage servicing for nearly all of our home loan customers for the life of the loan, we know the history of the loan and can give our customers confidence that we have or can get answers to any question they may have. And remember that we only get paid our servicing fee if the borrower makes his or her payment. So we are motivated to help them if they run into some financial difficulty that impacts their ability to make their house payment. We are on THEIR side.”

We have a number of exciting improvements coming soon to our Mortgage Services website, www.servicehomeloan.com. As always, feel free to contact me directly should you have any questions about your mortgage, or if you are looking to purchase a new or investment property or refinance your current mortgage.

 

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