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Loan Servicing

What is Loan Servicing?

Loan servicing is the ongoing management of active loans including payment processing, schedule maintenance, account modifications, and customer support. TimveroOS automates servicing operations through configured workflows while maintaining accurate balance tracking and compliance with payment allocation rules.

Servicing Capabilities

1. Payment Schedule Management

Schedule Types:

  • Simple interest calculations

  • Equal installment (annuity) schedules

  • Custom amortization structures

  • Flexible payment arrangements

Schedule Operations:

  • Automatic generation upon loan disbursement

  • Schedule recalculation for modifications

  • Grace period handling

  • Payment holiday processing

  • Partial prepayment adjustments

Schedule Components:

  • Payment date and amount

  • Principal and interest breakdown

  • Balance tracking

  • Interest accrual calculations

Configuration:

2. Payment Processing

Payment Channels:

  • ACH/direct debit

  • Wire transfers

  • Card payments

  • Cash payments (branch)

  • Online payment portals

Payment Allocation:

  • Waterfall allocation rules (fees, interest, principal)

  • Partial payment handling

  • Overpayment processing

  • Escrow account management

Processing Automation:

  • Automatic payment posting

  • Real-time balance updates

  • Payment confirmation generation

  • Exception handling and routing

Configuration:

3. Delinquency Management

Monitoring:

  • Automated delinquency detection

  • Early warning signal identification

  • Past-due status tracking

  • Roll rate analysis

Collection Workflows:

  • Automated reminder notifications

  • Escalation based on days past due

  • Channel optimization (SMS, email, call)

  • Payment arrangement workflows

Self-Service Resolution:

  • Customer payment portal access

  • Payment plan setup

  • Promise-to-pay recording

  • Account status visibility

Configuration:

  • Framework: Delinquency rules, collection workflows

  • Admin Panel: Collection strategy configuration

  • SDK: Delinquency status management

4. Loan Modifications

Modification Types:

  • Payment holidays (temporary suspension)

  • Term extensions

  • Interest rate adjustments

  • Restructuring with new schedule

  • Refinancing

Modification Process:

  • Modification request submission

  • Eligibility assessment

  • Trial period management (if applicable)

  • Permanent modification implementation

  • Schedule regeneration

Modification Tracking:

  • Modification history

  • Trial period performance

  • Investor approval tracking

  • Regulatory reporting

Configuration:

  • Framework: Modification workflows, calculation logic

  • Admin Panel: Modification rules and workflows

  • SDK: Credit Operations

5. Customer Self-Service

Self-Service Capabilities:

  • Statement access and download

  • Payment history review

  • Schedule viewing

  • One-time payment execution

  • Recurring payment setup

  • Account preference management

  • Document retrieval

Portal Features:

  • Real-time balance display

  • Next payment due information

  • Payment method management

  • Communication preference updates

Configuration:

  • Framework: API endpoints for portal

  • Admin Panel: Self-service feature enablement

  • SDK: Customer portal integration

6. Portfolio Monitoring

Analytics:

  • Delinquency roll rates

  • Payment performance trends

  • Prepayment analysis

  • Portfolio composition

  • Risk concentration

Reporting:

  • Regulatory reporting automation

  • Investor reporting

  • Internal management reports

  • Ad-hoc analysis support

Monitoring Capabilities:

  • Real-time dashboard views

  • Covenant compliance tracking

  • Alert triggers for thresholds

  • Predictive modeling

Configuration:

Servicing Process Examples

Standard Payment Processing

  1. Payment Received

    • Payment arrives through configured channel

    • System identifies loan account

    • Payment amount recorded

  2. Allocation

    • Waterfall rules applied (fees → interest → principal)

    • Balance updated in real-time

    • Transaction recorded with full audit trail

  3. Schedule Update

    • Remaining schedule adjusted if needed

    • Next payment due date confirmed

    • Customer notification triggered

  4. Confirmation

    • Payment confirmation generated

    • Receipt sent to customer via preferred channel

    • Account status updated

Payment Holiday Processing

  1. Request Submission

    • Customer requests payment holiday through portal or staff

    • Eligibility rules evaluated

  2. Approval

    • Automated approval if criteria met

    • Manual review if edge case

    • Customer notified of decision

  3. Schedule Adjustment

    • System generates new schedule with holiday period

    • Interest accrual adjusted

    • New payment dates calculated

  4. Implementation

    • Schedule updated in system

    • Customer receives new schedule

    • Automatic payment instructions updated

Delinquency Resolution

  1. Detection

    • Payment missed on due date

    • System updates delinquency status

    • Early warning signals tracked

  2. Outreach

    • Automated reminder sent (Day 1)

    • Escalation messages triggered (Day 7, 14, 30)

    • Channel optimization applied

  3. Self-Service Resolution

    • Customer logs into portal

    • Views past-due amount

    • Makes payment or sets up payment plan

  4. Account Cure

    • Payment processed

    • Delinquency status cleared

    • Normal servicing resumed

Implementation Resources

Through SDK (Development team)

Through Admin Panel

Servicing Configuration:

Analytics Configuration:

Workflow Configuration:

Related Topics

TimveroOS: Automated loan servicing

PreviousLoan OriginationNextProcess Automation

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