Frequently Asked Questions

General Information

Is Servicing Pros my lender?

No, Servicing Pros is not your lender. We are a dedicated loan servicing company responsible for managing the administration of your loan on behalf of the original lender, investor, or fund manager. While we handle tasks such as payment collection, account management, and customer support, the ownership and financial interest in the loan remain with the lender or investor who originated the loan. Our role is to facilitate a smooth repayment process and assist borrowers with inquiries or concerns.

What services does Servicing Pros Inc. offer?

We provide loan servicing for private lenders and private debt funds, including multi-lender servicing, master servicing, sub-servicing, and servicing for REITs. Additionally, we offer fund administration, including investor statements, mortgage pool statements, and net asset value (NAV) calculations. We also provide accounting and tax reporting services.

What types of loans do you service?

We specialize in servicing private loans, including business-purpose loans, real estate-backed loans, and loans for private debt funds and REITs.

Do you offer loan origination services?

No, we do not engage in loan origination. We strictly provide loan servicing and fund administration.

How do I request a sample servicing agreement?

Our latest sample servicing agreement can be provided upon request.

How do I get started with Servicing Pros Inc.?

Contact us to discuss your specific servicing or fund administration needs. We will guide you through the setup process and provide a customized service agreement.

Fund Administration

What fund administration services do you provide?

We offer investor statements, mortgage pool reconciliation and reporting, NAV calculations, and distribution management, ensuring compliance with fund agreements and private placement memoranda (PPMs).

How often are investor statements provided?

Investor statements are typically provided monthly, but we can accommodate different reporting schedules based on client needs.

How are fund administration fees calculated?

Fees are typically based on the total assets under administration. Please contact us for a customized quote based on your specific fund structure.

Accounting & Reporting for Your Operations Record Keeping

What accounting services do you offer?

We provide balance sheet reconciliation, income statement preparation, financial accounting, and CPA engagement for tax reporting and compliance. In addition, we offer comprehensive accounting and bookkeeping services that are updated daily using your QuickBooks Online account. This ensures that your financial records are always current, giving you real-time insight into your operations. By integrating directly with your QuickBooks Online, we manage all aspects of your bookkeeping—such as tracking income and expenses, categorizing transactions, and maintaining accurate ledgers—with full transparency. This daily updating allows you to monitor your financial health at any time, streamline decision-making, and simplify collaboration with your CPA or tax professional. Our goal is to provide you with a clear, up-to-date picture of your finances, eliminating surprises and ensuring compliance with all reporting requirements.

Lenders

What types of loans does Servicing Pros service?

We specialize in servicing the following types of loans: 

• Private Lenders and Mortgage Funds: Loans originated by private lenders or managed within mortgage funds.
• Multi-Lender Loans (Fractionalized Loans): Loans funded by multiple lenders with payments split accordingly.
• Debt Funds and REITs: Structured real estate investment trusts and other debt fund loans.
• Business-Purpose Loans: Includes DSCR (Debt Service Coverage Ratio) loans, bridge loans, and other commercial-purpose loans.
• Non-Performing and Foreclosure Loans: Loans in default or at risk of foreclosure.

Can Servicing Pros split payments between multiple lenders on a loan?

Yes, we regularly allocate payments among multiple lenders based on ownership percentages or agreement terms. Many brokers and originators specialize in these loans and choose Servicing Pros specifically for this expertise.

Can Servicing Pros distribute payments to brokers for interest rate spreads or servicing fee spreads?

Yes, we facilitate payments to brokers for interest rate or servicing fee spreads. However, we require a contract or agreement between the brokers and lenders that explicitly outlines the terms of this arrangement before processing such payments.

If a borrower completely defaults on their loan, can you help with foreclosure?

Yes. While we do not conduct foreclosures ourselves, we assist lenders by coordinating with a foreclosure company of their choice or one of our trusted vendors.

• If the lender chooses one of our vendors, we act as their single point of contact throughout the foreclosure process.

How does Servicing Pros handle defaulted loans?

We assist lenders in servicing non-performing loans, including:

• Sending default notices
• Managing foreclosure proceedings (as directed by the lender)
• Tracking advances and recoverable costs
• Lenders must authorize all foreclosure actions, and Servicing Pros will facilitate the necessary steps in compliance with state laws.

Why does the lender have to approve the Demand for Payoff?

As the loan servicer, we take directions from the lender. The payoff demand calculation must be reviewed and approved by the lender before we can release it to the requestor.

Note: In Honchariw v. FJM Private Mortgage Fund, LLC (83 Cal. App. 5th 893), the California 1st District Court of Appeal ruled that default interest charged on the entire outstanding loan balance, rather than just the delinquent amount, is an unenforceable penalty. Lenders should review their loan agreements and consult legal counsel to ensure compliance.

Why does Servicing Pros hold funds under a "Good Funds" policy?

Servicing Pros follows a 6-business-day hold policy before disbursing funds to lenders. This verification period ensures:

• Fraud prevention
• Accurate and secure transactions
• Compliance with financial best practices

This “Good Funds” policy protects all parties involved in the loan process:

• In accordance with Section 12413.1 of the California Insurance Code, we are obligated to possess good funds before disbursing any funds. It is necessary for us to ensure that the funds have been cleared through the financial banking system with reasonable certainty. Our policy dictates that funds must be held for a period of 6 business days before disbursing, except for wire transfers, which are held for 2 business days.
• Furthermore, the processing of disbursements follows the following schedule:
• ACH (Automated Clearing House): Processing takes place on Monday (with deposits on Tuesday), Wednesday (with deposits on Thursday), and Friday (with deposits on Monday).
• Regular Checks: Checks are processed once a week on Wednesdays.

Does Servicing Pros originate or create loan documents (notes and trust deeds)?

No, Servicing Pros does not originate loans or create loan documents. We specialize in servicing loans after they have been established. For the creation of loan documents, we recommend consulting professionals such as real estate brokers, attorneys, or escrow companies.

How does Servicing Pros handle late fees collected from borrowers?

Servicing Pros retains a portion of the late fees collected, with the remaining amount disbursed to the lender. This arrangement ensures that both parties are compensated for the additional administrative efforts required due to late payments.

What actions does Servicing Pros take to collect late payments?

We have an automatic late notice program that sends written notifications to borrowers immediately after a payment is missed. Subsequent notices are sent at regular intervals until the payment is received. This systematic approach has proven effective in managing delinquent accounts.

We also make a courtesy call before the grace period ends to remind borrowers so that they do not incur a late fee. Our program includes both email notifications and phone calls for this process.

Does Servicing Pros hold original loan documents?

No, we do not hold original loan documents as a custodian.

How does Servicing Pros get paid for its services?

Our fees are collected at the time of payment processing from the appropriate party, as indicated in the servicing agreement. This method ensures transparency and aligns with the terms agreed upon by all parties involved.

Loan Payments & Processing

What are my borrower payment options?

We offer multiple convenient ways to make payments:

• Mail: Send a check or money order with your account number included to:
  • SERVICING PROS INC. P.O. Box 219, Bonita, CA 91908
  Important: Allow sufficient time for delivery to avoid late fees.
• Recurring ACH Auto Payment (No Fee): Set up automatic debit payments via ACH for hassle-free payments. Go to our Resources page for the link.
• One-Time Online Payment ($7.50 Fee): Make a one-time payment via our borrower portal at www.ServicingPros.com.
  • A $7.50 fee applies per transaction.
  • Accounts must be fully onboarded before online payments can be made.
• Pay by Phone ($15.00 Fee): Call 877-313-0095 to make a payment with a live representative.
  • A $15.00 processing fee applies.

Payment Cutoff Time

• Payments made before 4:00 PM (PST) on business days are processed the same day.
• Payments received after this time will be credited on the next business day.

When will I receive my payment statement?

Statements are sent approximately two weeks before the due date via email.

Are there fees for making loan payments?

Yes, certain payment methods may have fees:

• Mailed payments: No fee
• ACH recurring payments: No fee
• Online one-time payments: $7.50 per transaction
• Phone payments: $15.00 per transaction

Can I send additional money with my payment?

Yes, but how extra funds are applied depends on your loan terms: 

• Extra funds will first cover unpaid interest, late fees, and outstanding charges before applying to the principal balance.
• If you want additional funds to be applied in a specific manner, you must include written instructions.
• Some loans may have prepayment penalties—check your loan agreement for details.

I am using my bank’s “bill pay” and they debited my account – why has it not been posted by Servicing Pros yet?

Most banks mail physical checks when using electronic bill pay, even if they deduct funds from your account immediately. These mailed checks must be received and processed before posting to your loan account.

How do I wire a payment?

Contact our customer service team at (877) 313-0095 or email [email protected] (mailto:[email protected]) for wire instructions.

WIRE FRAUD ALERT: Always verify wire instructions by calling our office directly using a trusted phone number.

Does Servicing Pros report payments to credit bureaus?

No, we do not report payment history to credit bureaus. However, we offer Verification of Mortgage (VOM) services for third parties upon request.

Loan Account Management

Does Servicing Pros have an investment in the loans they service?

No, Servicing Pros is a third-party loan servicer and does not own or invest in the loans we manage. Our role is administrative, ensuring compliance and accuracy in loan servicing.

How are my payments applied?

Unless specified otherwise in your loan agreement, payments are applied in the following order:

• Regular Payment Amount Due (Interest, Impounds, Fees, and Principal)
• Unpaid Interest Charges
• Late Fees
• Unpaid Charges
• Principal
• Additional Funds (as directed by the borrower)

How can I allow a third party to access my loan information?

Submit a Third-Party Authorization Form via our Resources Page.

How do I update my personal information?

Contact our customer service team to update your details. A written request or Change of Address Form may be required.

How do I request a Payoff Demand?

Visit www.servicingpros.com and select “Demand Request Form” in the top-right corner. Choose between a New or Updated request.

When will I receive my Payoff Demand?

Here are some regulations regarding timing of payoff demands:

• Consumer loans (owner-occupied): Within 7 business days
• Business-purpose loans (non-owner-occupied): Within 21 business days
• Rush Requests: Processed within 2 business days While we are allowed up to 21 days, we strive to provide regular payoff demands within 3–5 business days whenever possible.

Why do I have payoff fees?

Payoff fees cover the administrative costs of finalizing a loan payoff, including:

• Demand Fee: Preparation of the payoff statement
• Wire Fee: Applied if funds are sent via wire
• Reconveyance & Recording Fee: Covers lender processing and county recording fees
• Closeout Fee: Ensures final compliance checks and account closure
• California SB2 Fee: Required for properties located in California
• Broker Fees: Additional fees per the Commercial Loan Agreement or Promissory Note

Foreclosure & Non-Performing Loans

I am a borrower and concerned about foreclosure. What should I do?

Servicing Pros cannot offer legal or financial counseling. If you're experiencing difficulties, you should:

• Communicate directly with your lender to explore available options.
• Seek guidance from HUD-approved housing counselors at HUD Foreclosure Assistance.
• Be aware that government relief programs for traditional loans may not apply to private loans.

When are payments considered late?

The due date, grace period, and late fees are detailed in your Promissory Note.

• If a grace period exists, the late fee is applied immediately after the grace period ends.
• Borrowers are responsible for ensuring timely payments, even if delays occur with mail or online transactions.

What should I do if I cannot make a payment on time?

• Notify Servicing Pros as soon as possible.
• Discuss potential options with your lender to avoid default or foreclosure.

Will you waive a late fee?

• If the Note contains provisions for a late fee, the lender or servicing company is typically responsible for enforcing those provisions. This means that if a borrower makes a payment that is late, the lender may charge a late fee in accordance with the terms of the Note.
• Whether or not a late fee is waived will depend on a variety of factors, including the borrower’s payment history, the amount of money that is late, and the amount of remaining principal on the note.
• It is important to note that there is no guarantee that a late fee will be waived, as each request is examined on a case-by-case basis. However, if a borrower is facing extenuating circumstances that are preventing them from making their payment on time, it is always a good idea to contact us to discuss their options and see if there are any alternatives available.

Account Support

I forgot my login password. Can you help?

Yes, contact Customer Assistance, and we will reset your password.

My bank rejected my payment. What do I do?

• You will receive a notification regarding the rejected payment.
• Check with your bank for details.
• A returned payment fee (typically $25.00) may apply.
• If a rejected payment causes a late payment, a late fee may also be assessed.

What is a Verification of Mortgage (VOM)?

A VOM confirms your mortgage details, including loan balance, payment history, interest rate, and term. Request a VOM on our website.

What is an escrow/impound account?

• An escrow account, also known as an impound account in some states, is a special account set up to collect funds from the borrower to pay for property taxes and insurance premiums.
• Each month, a portion of the borrower’s mortgage payment is deposited into the escrow account. When the bills for property taxes and insurance premiums become due, funds are disbursed from the escrow account to pay them.
• It is important for borrowers to ensure that the company receives invoices and sufficient funds for property taxes and insurance premiums at least 30 days before they are due. This allows the payments to be made on time and avoids potential penalties or other negative consequences.
• It is your responsibility to send invoices and ensure sufficient funds are available for these payments at least 30 days before they are due to prevent penalties.

What type of information will I receive from you?

You will have access to:

• Monthly statements
• Late payment notices (if applicable)
• NSF (Returned Payment) Notices
• Balloon Payment Notices (if applicable)
• Annual Statements
• Tax Forms (1098/1099 if required)

What type of year-end statement will I receive?

You will receive an End-of-Year Account Summary for tax purposes.

• IRS 1098 Forms are provided only for individuals (not for companies or trusts).
• IRS 1099 Forms are sent only to non-corporate/non-exempt lenders.

Why didn’t I receive a 1098?

We require a completed W-9 with your EIN or TIN on file. A 1098 will not be generated if:

• Your loan is held in an IRA
• Your loan is in an LLC, Trust, Partnership, or Custodian Account
• The interest paid is under $600 If a 1098 is not issued, we can provide a Statement of Account for your tax preparer. For more details, refer to IRS regulations on reporting requirements.

Fee Schedules

Borrower Services Fee Schedule

• Borrower ACH Recurring Monthly Payment - Free
• Borrower Mailed-in Monthly Payment - Free
• Borrower Online Payment - 7.50
• Borrower Called-in Payment - 15.00
• Borrower NSF / Return Check Fee (State) - 15.00 to 30.00
• Borrower Verification of Mortgage - 50.00
• Borrower Holdback Draw Requests - 30.00
• Borrower Wire Processing (in or out) - 30.00
• Borrower Basic Payoff Demand Request - 30.00
• Borrower Rush Payoff Demand Request - 105.00
• Borrower Reconveyance Processing of Deed - 100.00
• Borrower Account Payoff Closeout Processing - 100.00 to 150.00

Additional Services Fee Schedule

Typically paid by the Lender unless we get a written agreement between Lender and Borrower or Master Servicer / Broker

• Optional Service - Insurance/Tax Impounds - 25.00 Per Month
• Optional Service – Insurance Tracking - 10.00 Per Month
• Setup Fee – Insurance/Tax Impounds - 150.00
• Setup Fee – Insurance Tracking - 25.00
• Setup Fee - Holdback or Draw Account - 150.00
• Setup Fee - Incomplete Submission - 50.00
• Lender Directed Short Payment / Payoff Processing - 50.00
• Lender Overnight Delivery - 30.00
• Lender Wire Processing (in/out) - 30.00
• Lender Account Updates (Assignments, Funding, Modifications, Extension, Default Interest) - 45.00
• Lender Account Transfer Out Processing - 100.00
• Lender - Borrower Bankruptcy Update Account (Borrower Recoverable) - 300.00
• Lender Foreclosure - Notice of Intent Mailing (Borrower Recoverable) - 75.00
• Lender Foreclosure – Update Account (Borrower Recoverable) - 300.00

Details of Servicing Pros Inc. Fees

If loans have Broker / Master Servicer compensation – Those fees will be based on either an attached agreement or an Account Services Fee Agreement between the Lender(s) and Broker / Master Servicer.

Additional Resources

For forms and additional resources, visit our Resources Pages, where you can find:

• Change of Address Form
• 3rd Party Authorization Form
• Authorization for Automatic Withdrawal Form
• Demand Request Form
• Other frequently requested documents

If you have any further questions, please contact us at (877) 313-0095 or [email protected] (mailto:[email protected]).

Have more questions? Contact Servicing Pros Customer Service for further assistance.