What is Mortgage Servicing?
Any financial institution, public or private, which lends money for the
purchase of commercial real estate is a mortgage servicing company. Mortgage servicing
companies hold the mortgage and receive payments for a loan.
Lenders take on a measurable amount of risk in providing loans to
commercial real estate investors. Through the mortgage servicing process, lenders consider
many factors to mitigate those risks.
Four key factors in mortgage servicing for commercial real estate are:
- debt-service ratio.
- Loan-To-Value (LTV).
- creditworthiness of the borrower.
- repayment terms.
These factors must be in the appropriate range based on the
requirements of individual lenders. Lenders utilize underwriters to determine loan approval
for the borrower and the commercial property.
CRE Mortgage Servicing Process
During the mortgage servicing process, underwriters must look at all
pertinent documentation to determine loan approval. Underwriters must obtain personal and
business financial statements, operating statements, rent rolls, and
credit reports to determine loan worthiness.
When done manually, this can be a long and drawn-out process, which is why
many use CRE automated underwriting to get approval results faster.
The CRE mortgage servicing process through automated underwriting
eliminates errors, speeds up the approval process, and drives down loan servicing costs.
All property information gets extracted from Excel or Argus Modeling
spreadsheets into the software platform with a click of a button. Personal financial
information can also be sent in multiple formats and extracted into the automated
underwriting software quickly and easily.
After extraction and calculation, all necessary information is summarized
into a one-page document for an underwriter. The underwriter can then review the risk and
confidently decide to approve the loan.
Once a loan is approved, the borrower obtains the funds to purchase the
property. The lender or mortgage service company will manage the loan from the closing of
the purchase until the loan satisfaction.
The Key Benefits of Mortgage Servicing
- Manage your payments.
- View your taxes and insurance payment history in escrow.
- View your loan information.
- Access your mortgage documents.
- Quickly view and keep track of your properties' equity.
Lenders must complete their application and approval process
for every commercial real estate loan. When considering which lender to choose as your
mortgage servicing company, look for one who will assist you in driving down costs.
Why Should you get Mortgage Servicing from Clik.ai?
Clik.ai has been helping Commercial Real Estate investors, brokers,
lenders, and managers with mortgage servicing since 2017 and have helped identify $12
Billion in commercial real estate opportunities.
By working with the Servicing Hub, Commercial Real Estate investors and
lenders can reduce operating expenses, stay competitive, free up time to focus on customer
relationships, and spend time on deal analysis rather than mortgage
When looking for a mortgage servicing company, consider the Services Hub.
Our on-demand team of commercial real estate analysts are experts in mortgage servicing, lease abstraction, lease audits,
automated underwriting, and much