What is Subservicing?
What is Subservicing?




Mortgage servicing: when a financial institution performs day-to-day administrative duties associated with a loan.
Mortgage subservicing: when financial institutions ask another entity, like Cenlar, to perform some or all of its servicing functions on its behalf.
As a subservicer, Cenlar performs all the servicing duties on behalf of our financial institution clients as well as managing many other back office loan servicing functions.
Cenlar is uniquely focused on your business.
We get it. How can you cut your servicing costs but provide excellent service to your homeowners? What about compliance? How do you avoid risk and maintain heightened security? Cenlar, the top subservicer in the industry, has the resources, the expertise and the flexibility to develop a custom-tailored subservicing program that’s right for your organization.


Mortgage accounting
The collection and recording of monthly mortgage payments from homeowners and the transfer of funds to investors, amongst other duties, including:
- Handling the acquisitions of new loans
- Setting up loan files
- Receiving payments
- Maintaining bookkeeping records
- Compliance with remittance and reporting requirements
Homeowner services
Cenlar’s goal is to care for homeowners with the highest level of service. Our philosophy is to treat our clients’ homeowners as we would like to be treated. Our clients’ homeowners trust us to do the right thing, to get it right the first time, to hold ourselves accountable for our actions and to stand in their shoes whenever an issue arises.
Highly-trained customer service representatives:
- Care for homeowners daily with
outstanding customer service. - Answer questions homeowners may have regarding their mortgages.
Homeowner mortgage management tools:
- Homeowner online access at Loanadministration.com — our updated website gives homeowners easy access to the mortgage information and account management tools they need.
- Mobile access at Cenlar MobileTM – an always-on, self-service solution that gives homeowners greater ability to manage their accounts wherever they happen to be.
End-to-end homeowner services:
- Sending payoff statements and handling assumptions.


Taxes, insurance and escrow administration
The collection and distribution of escrow funds for serviced loans in order to protect the investor’s interest in the property. As the homeowner makes monthly deposits to an escrow or impound account, the servicer uses those funds to pay property taxes and insurance premiums when they come due. Taxes, insurance and escrow administration functions include:
- Setting up adequate escrow reserves
- Retaining escrow funds for future use
- Disbursing funds from the reserve to pay real estate taxes, hazard insurance premiums and other bills as necessary
Asset management
Caring for homeowners every day to keep them on track with their mortgages. Asset management functions include:
- Caring for homeowners over the life of their loans
- Handling daily questions and concerns
- Making every effort to keep homeowners in their homes
- Making homeowner contact when an account becomes past due or when a homeowner misses a payment
- Taking action when accounts become delinquent and working with the homeowner to bring the account current and avoid lengthy and costly legal action
- Collecting past-due payments
- Providing counseling, early intervention and short-term or long-term forbearance and repayment plans
- Handling foreclosures when necessary
- Managing property owned after foreclosure
Interested in Cenlar’s Subservicing Solutions?
Cenlar invites banks, credit unions and mortgage companies to learn more about our custom subservicing solutions. Please submit the form below.