Loans are a major financial commitment that requires careful consideration of servicers and servicer practices. As one large national servicer, Lakeview Loan Servicing, LLC (“Lakeview”) services hundreds of thousands of loans.
Background on Lakeview Loan Servicing
Lakeview is a subsidiary of Bayview Loan Servicing, LLC, which is owned by Bayview MSR Opportunity Corp, a joint venture between Silverpeak and Avenue Capital Group. Lakeview was established in 2013 and services a range of loans including conventional, government-insured, reverse, and second lien mortgages. As of 2022, Lakeview services over $100 billion in residential mortgages.
With headquarters in Atlanta, Georgia, and offices across the country, Lakeview employs over 2000 people. While it has grown significantly in the last decade, expansion has brought some growing pains as Lakeview works to adequately staff fluctuating call volume and improve customer service issues. Still, it remains one of the top ten largest mortgage servicers nationally by servicing portfolio size.
Loan Servicing Practices
Loan servicing entails managing the payment processing, collections, loss mitigation, and default administration for a loan. While the specifics vary by loan type (e.g., FHA vs. conventional) and investor (e.g., Fannie Mae vs. private), here are some general practices:
Payment Processing
Lakeview accepts payments online, by phone, and by mail. It also offers options like auto-pay from a bank account. Payments are processed quickly, but extra time is allowed for mailing to avoid late fees. eStatements are available as a paperless option.
Loss Mitigation
When borrowers face financial difficulties, loss mitigation seeks alternatives to foreclosure through programs like loan modifications, repayment plans, short sales, or deeds-in-lieu. Lakeview evaluates hardship documentation and income/expense information to determine eligibility. While approval is not guaranteed, it pursues options required by investors.
Default Management
If a borrower becomes delinquent on payments and loss mitigation fails, Lakeview starts collections efforts like phone calls and letters and potentially initiates foreclosure proceedings if the loan goes into default. During foreclosure, it works with third-party vendors for related services like property preservation and marketing/sales.
Customer Service
Lakeview’s customer service can be reached by phone, email, fax, or mail. It aims to promptly respond to inquiries and address issues, though call wait times may be lengthy due to staffing constraints. Service levels are monitored for continuous process improvements. Borrowers can also check their accounts online or via mobile app.
Compliance
All services must comply with regulations like the Real Estate Settlement Procedures Act (RESPA), Truth in Lending Act, Fair Credit Reporting Act, and others. Lakeview maintains procedures to ensure adherence to federal and state laws regarding the servicing of residential mortgages. It is also licensed as required in jurisdictions where it operates.
Technology Systems
Behind the scenes, Lakeview utilizes robust technology systems to support core servicing functions. Its servicing platform provides the infrastructure to process transactions, track payment history and balances, perform escrow analysis, and interface with third parties. Systems are periodically upgraded to integrate the latest capabilities.
Interacting with Lakeview Customer Service
Given the high-volume nature of servicing, customer interactions do not always go smoothly. However, there are best practices borrowers can follow to help resolve issues:
- Document all contact attempts – keep details of calls, reps, and issues discussed to reference later if needed.
- Escalate to a supervisor or manager if not getting resolution from initial reps. Politely request to speak with someone higher in authority.
- Request that notes be added to your account file detailing the nature of your contact and its resolution (or lack thereof).
- Use multiple contact methods if one isn’t working – call, email, mail a letter. Additional touch points increase visibility.
- Be persistent but polite. Servicers receive a high volume of calls daily and reps are handling multiple borrower issues simultaneously.
- Consider contacting the Ombudsman or submitting a complaint if customer service remains unhelpful after dedicated efforts. State banking/mortgage regulators can also assist with certain issues.
Common Payment & Billing Questions
One of the most important interactions servicers have with borrowers is related to payments and billing. Here are some frequently asked questions on these topics:
What payment methods does Lakeview accept?
As mentioned previously, Lakeview accepts payments online, by phone, auto-pay from a bank account, and by mailing a check or money order. eCheck and credit/debit cards can also be used for a fee.
When is my payment due each month?
Standard monthly due dates are generally the first day of the month. However, the exact timeline is outlined in borrowers’ promissory notes and loan documents. Partial or late payments may incur penalties.
How do I set up auto-pay?
Borrowers can enroll in Lakeview’s free automatic payment (AP) program online through their account dashboard or by calling customer service. AP deducts payments directly from a designated bank account each month.
What address do I send my payment to?
The payment remittance address is listed on billing statements, but for Lakeview, it is generally PO Box 79001, Phoenix, AZ 85062-9001. Include the account number on checks to ensure proper crediting.
How do I check my account balance or payment history?
This information, along with documents like statements, can be accessed through a Lakeview online account or by contacting customer service for assistance. Statements are also mailed monthly.
Handling Delinquencies & Loss Mitigation
Delinquencies are always a possibility, given life’s uncertainties, so it’s important borrowers understand their options. Here are details on how Lakeview addresses late or missed payments:
How long before a late fee is charged?
Late fees are typically assessed 15 days after the payment due date passes without receipt of the full amount owed. Fees vary based on the loan but average around 4-5% of the payment amount.
When is my loan reported delinquent?
Loans are generally reported 30+ days delinquent to the credit bureaus Equifax, Experian, and TransUnion. This occurs after the payment due date at the end of that 30-day period without the full amount paid.
What actions will Lakeview take for non-payment?
It will initiate collection calls/letters and may pursue alternatives like loan modifications or repayment plans. If unresolved, foreclosure is possible after several months of delinquency, depending on investor requirements.
What loss mitigation options are available?
Common programs include forbearance, loan modifications (including COVID emergency modifications), repayment plans, short sales, and deeds-in-lieu to avoid foreclosure. Borrowers must contact Lakeview and provide financials/hardship details to start the evaluation process.
Overall, the sooner borrowers engage with Lakeview when facing difficulties, the more options tend to be on the table. However, loss mitigation cannot be guaranteed; it depends on individual circumstances and loan/investor guidelines.
Working with Lakeview: Additional Considerations
While this overview covers major servicing practices and areas borrowers frequently interact on, there are a few more angles worth noting when dealing with Lakeview:
Transferring Servicing Rights
The right to service loans can change hands. Borrowers are notified in writing in advance per regulations if servicing transfers from one company to another, like from Lakeview. But this transition should be seamless from the borrower perspective.
Non-Government Insured Loans
Some investor regulations/guidelines for FHA, VA, USDA, or conventional conforming loans backed by Fannie/Freddie may not apply to portfolio or jumbo non-conforming loans. Unique contracts and rights may differ in these scenarios.
Data Privacy & Security
Lakeview maintains client data confidentially per privacy policies but cannot prevent all risks of cyber threats or human error. Identity theft protection is advised, especially for those with delinquencies or special circumstances.
Escalation to Regulators
As a licensed non-bank servicer, Lakeview must follow the requirements of the Consumer Financial Protection Bureau, HUD, and various state agencies overseeing residential mortgage servicing administration and complaint response. Regulatory oversight exists for certain borrower issues.
Changing Contact Preferences
Borrowers who prefer paperless billing or certain channels like text or e-mail over letters/calls control these options through their Lakeview online portal. Contact updates require authentication for security and data ownership confirmation.
Overall, communication, documentation of all interactions, escalation when needed, and an understanding of baseline rights and responsibilities help set borrowers up for the best possible servicing experience – regardless of whether it’s with Lakeview or any other servicer handling their loan.