You may have heard about LoanCare and NewRez in connection to mortgage servicing if you are a homeowner or want to become one. But what do these expressions really mean? In this thorough tutorial, we’ll succinctly describe LoanCare and NewRez’s core concepts and their significance to the mortgage industry. Let’s get started by explaining mortgage servicing to you.
What is LoanCare?
Managing mortgage loans for lenders or investors is the area of expertise for LoanCare, a mortgage servicer. When you get a mortgage to purchase a house, the lender often assigns LoanCare the responsibility for loan servicing.
As a homeowner, LoanCare will be your point of contact for customer support, escrow management, and payment processing pertaining to your mortgage.
Why Would LoanCare Do That?
The main duties of LoanCare as a mortgage servicer are as follows:
LoanCare is in charge of collecting borrowers’ mortgage payments. This entails collecting and processing payments on a regular basis, keeping thorough records, and giving borrowers documents outlining their payment history.
LoanCare is in charge of overseeing your escrow account, if you have one. They gather money and make sure that payments are paid on time for mortgage insurance, homeowners insurance, and real estate taxes, if necessary.
For any queries or issues pertaining to their mortgage, borrowers should first direct their inquiries to LoanCare. They help borrowers through the mortgage servicing process and respond to their questions.
What is NewRez?
Mortgage lenders and servicers NewRez and New Residential Investment Corp. both go by these names. To originate and service mortgage loans, they collaborate closely with LoanCare and other servicing partners.
Homebuyers may choose from a variety of mortgage solutions offered by NewRez, which also assists customers with the loan application and approval processes.
How Do NewRez and LoanCare Relate?
In their business agreement, NewRez and LoanCare may transfer the servicing rights of the mortgage loans that NewRez creates to LoanCare. This indicates that LoanCare may handle your loan if you secure a mortgage via NewRez.
While LoanCare takes care of the continuing administration and servicing responsibilities for your mortgage, NewRez continues to be engaged as the lender.
The Advantages of Servicing Mortgages
Homeowners get a number of advantages from mortgage service offered by businesses like LoanCare, including:
Managing your monthly mortgage payments is made simpler when you work with a specialised mortgage servicer who acts as your single point of contact for any payment-related issues.
If you have an escrow account, the servicer will take care of paying your property taxes and insurance on your behalf, giving you peace of mind and assisting you in creating a budget for these costs.
Mortgage servicers like LoanCare provide customer service to help with any queries or problems you may have relating to your mortgage. They can help you with any required documentation and can walk you through the procedure.
LoanCare and NewRez are critical players in the mortgage sector. While NewRez generates and, in certain situations, assigns servicing rights to LoanCare, LoanCare manages mortgage loans on behalf of lenders or investors.
Understanding mortgage servicing makes it easier for homeowners to make payments and get the assistance they need for their mortgages. Contact their customer service departments or visit their official websites if you have any further inquiries regarding LoanCare or NewRez.