Special Servicer
Loan servicing is the process by which a company (mortgage bank, servicing firm, etc.) collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type of loan and the terms negotiated between the firm and the investor seeking their services. Anyone with a mortgage makes their regularly scheduled payments to a loan servicing firm. The vast majority of mortgages are backed by Federal housing programs such as Fannie Mae, Freddie Mac, VA, etc.
Mortgage servicing became "far more profitable during the housing boom", and servicers targeted borrowers "less likely to make timely payments" in order to collect more late fees. Many borrowers fell behind with their payments during the recession of 2008-2011, and with those delinquencies various fees were incurred.
Read more about Special Servicer: Overview, Companies Involved, See Also
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