servicing

The collection of principal, interest, and sometimes property taxes from borrowers; accounting for the cash flows due and the cash flows received; and remitting the cash flows to the entitled recipients. American Banker Glossary

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service service ³ verb [transitive]

1. FINANCE to pay a debt, loan etc:

• Cardholders are having trouble servicing their debts to the lender.

2. FINANCE if a financial institution services loans, debts etc, it manages them for another company, for example by collecting payments, calculating interest etc:

• We currently service loans for more than 15 million customers nationwide.

3. to examine a machine or piece of equipment and to mend it if necessary:

• Compaq relies heavily on independent dealers to sell and service its computers.

4. COMMERCE to provide a particular service, such as help, advice, transport etc:

• Our customers in Mexico are serviced through a network of independent insurance firms.

— servicing noun [uncountable] :

• We plan to bring the equipment back to the U.S. for servicing.

• Income from mortgage servicing rose sharply.

• The company has been increasing its loan servicing portfolio.

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servicing UK US /ˈsɜːvɪsɪŋ/ noun [U] FINANCE

► the activity of making regular payments to pay back a debt or loan, including interest: »

The Treasury is keen to reduce public borrowing quickly in order to prevent servicing costs climbing further.

→ See also LOAN SERVICING(Cf. ↑loan servicing)