How Lifecycle Commercial Loan Servicers Enhance Multifamily Borrowing
A loan closing is only the beginning of the borrower-lender relationship. Partnering with a lifecycle lender that also services its loans gives borrowers continuity from origination through servicing. Throughout the life of the loan, borrowers can benefit from in-house commercial loan servicers’ tailored solutions and superior customer service, which are hallmarks of a strong long-term partnership.
What Are In-House Commercial Loan Servicers?
An in-house multifamily seller/servicer has a dedicated team within the lending firm that manages and administers loans post-closing rather than outsourcing this responsibility to a third-party servicer. A seller/servicer can service a diverse set of assets, including loans from Government-Sponsored Enterprises (GSEs), such as Fannie Mae and Freddie Mac, and handle essential functions, including payment collection, escrow account management for taxes and insurance, and addressing customer service inquiries. By servicing loans in-house, lenders can provide borrowers with more efficient and personalized support.
Benefits of Partnering with an In-House Multifamily Loan Servicer
Working with seller/servicers has distinct benefits that can significantly enhance your borrowing experience, including:
- Direct Communication: Having a single point of contact streamlines the entire servicing process. Rather than navigating through multiple departments or external organizations, borrowers can quickly reach someone who understands their loan and can provide immediate assistance.
- Greater Transparency: In-house servicers typically provide superior access to loan information, ensuring borrowers stay well-informed about their loan status and any relevant changes.
- Stronger Data Security: In-house servicing allows lenders to maintain stricter control over borrower information, providing enhanced security and privacy protection for sensitive financial data.
Four Features of a Lender’s Servicing Experience for Borrowers to Consider
When comparing potential sellers/servicers, note that the ability to provide modern loan servicing depends on a firm’s technology capabilities. Look for commercial loan servicers offering comprehensive digital tools for loan management, including online payment systems and detailed reporting capabilities.
For example, Arbor’s ALEX (Arbor Loan Express), the multifamily industry’s first online agency lending platform, empowers borrowers to track every step of their loan. ALEX is a user-friendly, paperless, and automated platform that gives borrowers control of the loan application process, diligence checklist management, and critical information administration throughout long-term servicing. The platform exemplifies how customer service should be: convenient and accessible anywhere from any device.
Your in-house loan servicing experience should also include:
- Expertise: Servicers should have a robust portfolio, a strong track record in managing multifamily loans, and extensive experience in your property type to better understand your needs and challenges.
- Industry Reputation: Research the servicer’s standing in the industry. Look for recognized achievements, positive reviews, and industry certifications that validate their performance and reliability.
- Compliance and Risk Management: Strong compliance practices and risk management protocols are essential for protecting your investment. Ensure your loan servicer maintains robust systems for regulatory adherence and risk mitigation.
- Customization Options: Your servicer should offer flexible solutions tailored to your specific property requirements and business needs.
Arbor’s In-House Servicing Offers Borrowers Personalized Attention
The best commercial loan servicers do more than manage payments — they serve as true financial partners throughout the life of your loan and specialize in your unique situation. For more than three decades, Arbor has provided industry-leading customer service. Our team services a multibillion-dollar portfolio across the multifamily and single-family rental sectors, undergoes regular external audits to ensure compliance with industry standards, and maintains high servicer ratings from credit rating agencies such as Fitch Ratings and S&P Global Ratings.
Arbor’s growing and tenured servicing staff’s commitment to training hours and ongoing development of its technology offerings benefit each of our borrower relationships. Contact Arbor today to learn how an experienced and consistent servicing partner can prove invaluable as your portfolio grows and your financing needs evolve.
Interested in the multifamily real estate investment market? Contact Arbor today to learn about our array of multifamily, single-family rental, and affordable housing financing options or view our multifamily articles and research reports.