Regulating Mortgage Loan Servicing

13 Pages Posted: 15 Sep 2008

See all articles by Sean Coffey

Sean Coffey

National Center on Caregiving, Family Caregiver Alliance

Date Written: September 11, 2008


The home mortgage market has changed considerably in the past 15 years and as a result, loan servicing companies have become an important actor in the lending industry. The business function of loan servicers is to collect mortgage payments from borrowers and remit these payments to the owners of the mortgage. Borrowers have no input in deciding what company services their loan and consumer advocates have suggested that this has allowed some loan servicers to provide poor customer care or act unethically. In response, lawmakers have initiated efforts to regulate loan servicing practices. In 2007, the North Carolina General Assembly passed House Bill 1374 to regulate loan servicers operating in North Carolina. Through a literature review, content analysis of the statute, and interviews with stakeholders, I provide guidance for lawmakers who are considering similar legislation at the state and federal levels.

Keywords: Mortgage, loan servicing, countrywide, sub-prime

Suggested Citation

Coffey, Sean, Regulating Mortgage Loan Servicing (September 11, 2008). Available at SSRN: or

Sean Coffey (Contact Author)

National Center on Caregiving, Family Caregiver Alliance ( email )

180 Montgomery St.
Ste 900
San Francisco, CA 94104
United States

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