Servicing a Loan
Day-to-day servicing in Servicing 3.0 — payments, late fees, payoffs, statements, approvals, ACH and reports.
Add-onServicing 3.0 is an add-on. Contact [email protected] to enable it. Servicing e-mail notifications are switched on separately — ask us.
Servicing 3.0 runs the loan after it funds, from first payment to final payoff, on the same loan file. Setup is covered in Servicing 3.0 Setup.
How it works
Every payment, fee, draw and payoff is written to a permanent ledger. Balances, amounts due, late fees and payoff figures are calculated from the ledger, never typed in — so what your borrower sees matches what your accountant sees. Mistakes are corrected with an offsetting entry, not by editing history. Some processing runs overnight, so a few changes appear the next day.
Onboarding a loan
Open the loan's Servicing 3.0 tab → OnBoarding Info / Loan Settings. Import from file pre-fills from origination; complete the servicing details — borrower, dates, payment terms, late-fee and default-interest rules, exit fee, prepayment penalty and payment priority — then Onboard. The schedule builds itself.
Day to day
The Servicing screen is the loan's command center: balance, amount due, maturity and current rate across the top, status pills (delinquent, in default, matured…), and an action rail.
| Task | How |
|---|---|
| Take a payment | Make payment — enter amount, date and source. It is applied oldest-first in the loan's priority order (by default late fees, default interest, interest, principal, charges). |
| Late fees & default interest | Assessed automatically after the grace period, sized flat, by percentage, or the greater of the two. |
| Interest reserves | Can pay each period automatically until the reserve runs out. |
| Payoffs | Management → Payoffs — pick a good-through date for a quote with per-diem interest, exit fee and tiered prepayment penalty, and a branded payoff statement. |
| Statements | Mortgage statements become available each period and generate when first opened. |
| Draws | Released during servicing on rehab and construction loans — see Draw Management. |
Loan actions & approvals
Rate changes, extensions, fee waivers, reinstatements, curing a default, capitalizing arrears and moving a borrower's payment day run through an approval queue: staff submit, an approver signs off, and only then does the ledger change. Only users with the Grant Servicing Approvals permission (and managers) can approve, and every decision is recorded.
Collections, notices and reports
- ACH Collections — Servicing → Collections gathers every loan due plus borrowers' payment instructions and builds a bank-ready NACHA file to upload to your bank. Building the file records nothing; payments post when funds settle.
- Notifications (ask to enable) — payment reminders, late and default notices, maturity countdowns, receipts, payoff and statement notices, each configurable.
- Portfolio reports — Portfolio Snapshot, Delinquency & Aging, Maturity, Watch List, Payment Collection, Cash Receipts, Late Fees and Status Roll. Export to CSV or Excel, or schedule them to your inbox.
- Borrower Portal — borrowers see balances and statements, set up payments, request payoffs and submit draws. See The Borrower Experience.
Funded by a fund or investors?Servicing generates the returns that Fund Management distributes, so the two always agree.
Full detail: in LendingWise, open Platform Settings → Servicing Management → User Guide.
Updated 12 days ago