Transfers of servicing portfolios usually occur with little notice given to the personnel responsible for delivering the loans to the buyer. Many times the secondary marketing department will successfully market a portfolio and not inform the servicing manager until after the deal has been consummated. If the servicing manager has never done a servicing transfer or it’Äôs been a while since they did one, this event can disrupt the daily servicing operation and turn this area upside down.

With each loan sale the buyer of the portfolio will holdback roughly 10-15% of the sales proceeds. On a typical $1 billion portfolio the holdback can represent an amount in excess of $1 million dollars. These funds are not remitted to the seller until the documents are delivered and reviewed by the buyer (specific timing is spelled out in the Purchase and Sale Agreement). Stewart can not only assist the Seller in expediting the return of these funds by delivering complete loan files at the time of the transfer, but Stewart can assist the buyer in the review of the loans.

Buyers may be hard pressed to put together a team to review the loans if the timeframe for review is limited per the Purchase and Sale Agreement. Stewart can review these loans while working on the files for the seller. The result is a lower overall cost to both parties and a more efficient means of transferring loans.

Contact Stewart Lender Services to learn more about our Loan Sale Assistance services and how they will benefit your company.