Collateral refers to a valuable asset that a borrower offers to a lender as a way to secure a loan. This asset provides security to the lender in the event the borrower defaults on the loan.
A mortgage lien is an encumbrance on property used to secure a loan. The lien holder has a claim to the property in the event of a loan default.
Mortgage servicing involves the administration of a mortgage loan, including regular collection of payments, managing escrow accounts, tracking principal and interest payments, and administrating foreclosure procedures if necessary.
Insurance on conventional loans, provided by private insurance companies to protect lenders against loss if a borrower defaults on their loan.
