Loan servicing agent: Difference between revisions

{{a|contract|}}One who handles the interest and principal payments, monitors covenants etc. on behalf of a [[borrower]]. An unglamorous role; part of the pluming of the financial system for which the agent is paid a mere annuity, and with respect to which the agent, therefore, accepts as little risk as it can. Agency documentation, as is common for [[trust and agency service providers]] tend to be needlessly convoluted and, rather like legal opinions, spend most of their length specifiy in aggravating and usually outrageous detail every contingency for whcih the agent is not responsible, and many for which the lenders and borrowers are. Still, whatever your documents say, being a loan service agent  can involve quite a lot of risk, if you are in the habit of [[Citigroup v Brigade Capital Management|accidentally repaying almost a billion dollars of principal to lenders when it isn’t due]].