There are currently 2 names in this directory beginning with the letter S.
monthly charge that covers the cost of maintaining the loan, including but not limited to responding to requests for loan proceeds, changing loan payment selections, record keeping and preparing monthly statements. Service Fees have not been used in NEW loans for many years. But older loans may still contain provisions for service fees.
Service Fee Set-aside
a pool of money “set aside” from loan proceeds to cover the future costs of monthly service fees charged to the loan. Borrowers do NOT pay interest on this set-aside pool but cannot access the monies during the life of the loan. As noted above, Service Fee provisions are not currently used in new loans, but may still exist in older loans.