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Small UPB and Self Servicing

I was trained according to the philosophy that you should always have the protection of a licensed servicer in-between you and the borrower.  I fully understand that there are those that self service their notes.

 

I'm curious as to the strategy and and legal risk for someone that might have just bid up to $200 on a $500 UPB (wasn't me that bid).  If the average boarding fee for an NPL is $150 plus a hefty monthly fee, and these aren't recoverable fees, what is the portfolio management for such small assets.

I can imagine that such a loan could achieve a quick payoff if handled correctly.

@chemfun

It's always better to have it boarded with a loan servicer.  I understand the expense.  It comes down to what you're comfortable with.  If you're pursuing legal action, absolutely. If your just working it or sitting on it, I can understand  why you may not.  Just my thoughts.