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| This in-depth guide compares two major mortgage loan servicers - Lakeview Loan Servicing and myLoanCare. It provides background, service offerings, and customer reviews on managing home loans as well as options for struggling borrowers |
Without dedicated mortgage servicers, lending for home purchases would grind to a halt rapidly. Servicers enable the sale and transfer of mortgage contracts between banks without disrupting the payment streams or procedures seen by homeowners themselves. This greases the wheels for continuous cycles of mortgage financing availability across the housing market.
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Lakeview Loan Servicing and myLoanCare stand out as two of the largest non-bank servicers that handle these crucial administrative duties on behalf of big banks, mortgage lenders, investor groups, and government housing agencies. Between the two companies, they provide monthly account management for over $500 billion in mortgage debt involving over 2 million households.
This in-depth article will highlight the background, range of services, and borrower reviews for both Lakeview Loan Servicing and myLoanCare. The growth of non-bank specialty servicers has expanded massively since the Housing Crisis as large portfolios shifted away from banks. We’ll examine their evolution and compare offerings.
For borrowers struggling to make mortgage payments or modify loans, understanding their specific servicer's policies and procedures is key to accessing available relief assistance. This guide covers what borrowers should expect in working with Lakeview or myLoanCare.
Lakeview Loan Servicing
Background
Lakeview Loan Servicing has grown rapidly to become one of the major non-bank mortgage servicers in the country. Founded in 2007 in Coral Gables, Florida, it began by primarily servicing loans for correspondent lenders and smaller banks/credit unions through outsourcing arrangements. Some of their early clients included Investors Bank, EverBank, and various mortgage companies in the southeast U.S.As Lakeview’s servicing portfolio grew, it expanded operations by adding offices in California, Texas, and South Carolina. By 2017, its servicing book exceeded $50 billion in unpaid principal balance. Lakeview was servicing loans in all 50 states for over 300 different financial institutions and private investors.
Acquisition by Bayview Loan Servicing
In September 2018, Lakeview was acquired outright by Bayview Loan Servicing - one of the largest servicers of non-conforming mortgages. Bringing these two companies together under Bayview’s umbrella created one of the biggest private mortgage servicers nationwide.
How the Acquisition Impacted Lakeview
This Bayview deal greatly expanded Lakeview’s servicing authorities and abilities to retain loan servicing rights when mortgages transfer. Specifically, Lakeview obtained:
- FHA and Ginnie Mae Authority: Ability to service FHA-insured mortgages on behalf of the FHA as well as pools insured by Ginnie Mae. This requires strict compliance with federal regulations.
- VA Loan Authority: Powers to handle VA loans for military families, which have limits on fees/penalties assessed. Special training on VA requirements was implemented.
- Reverse Mortgage Capabilities: With Bayview’s reverse mortgage contracts, Lakeview obtained approvals to service Home Equity Conversion (HECM loans) - an area requiring unique processes around draws, taxes, insurance, and repayments.
- Loss Mitigation Expansion: Lakeview adopted more advanced modification and foreclosure prevention programs across expanded investor types - including hardship assistance developed initially at Bayview.
Services in Detail
Lakeview provides all standard services for borrowers with home loans in its portfolio including:Payment Processing
- Provides monthly mortgage statements
- Administers escrow impound accounts for taxes and insurance
- Accounts for principal, interest, escrow deposits
- Issues late fee assessments and default notices
Loss Mitigation Assistance
- Offers various relief programs to struggling borrowers- Repayment plans
- Loan modifications
- Rate reductions
- Term extensions
- Forbearance agreements
- Short sales
- Deeds-in-lieu of foreclosure
- Has dedicated loss mitigation reps to handle applications
Foreclosure Prevention
- Adheres to state and federal regulations for borrower notifications- Attempts to contact delinquent borrowers through calls and letters
- Provides information on relief options
- Reinstatement
- Repayment plans
- Modifications
Types of Loans Serviced
In addition to conventional loans, Lakeview has extensive experience handling:- FHA loans
- Reverse mortgages
- VA loans
- Private portfolio mortgages
- Loans eligible for GSE loss mitigation programs
This wide authority allows them to provide servicing continuity to borrowers even when their loans change ownership.
Reviews from Borrowers
Lakeview Loan Servicing has received both positive and negative reviews from borrowers:- Complaints about long hold times and inability to reach customer service
- Frustration over lost documents and inadequate document processing procedures
- Praise for knowledgeable account representatives who explain options clearly
- Positive reviews when borrowers successfully obtained a loan modification
While reviews highlight some deficiencies, Lakeview has increased staffing and provides borrower access through an online portal to improve operations.
myLoanCare
Company History
Headquartered in Irvine, CA, myLoanCare is a nationwide mortgage servicer that started operations in 2010 in partnership with Wipro and Opportunity Fund. It was founded specifically to handle Fannie Mae loan portfolios and has expanded from there to include all major investor types.In 2013, myLoanCare became fully owned by Wipro, one of India’s major IT companies. It has serviced over 1 million mortgage loans since its founding and employs over 1,000 servicing professionals.
Range of Offerings
myLoanCare provides full-scale mortgage servicing, including:Account Accessibility
- Online account portal for payments and documents- Mobile app for account updates and notifications
- Extended customer service hours (8am-9pm) with shorter hold times
Payment Collection
- Monthly statements and payment processing- Administration of escrow impound accounts
- Payoff quotes and refund processing
- Late fee notices and delinquency management
Default Servicing
- In-house loss mitigation staff handle workout packages- Loan modifications
- Repayment plans
- Extensions and forbearances
- Short sales and deed-in-lieu
- Foreclosure process management
myLoanCare handles conforming loans owned by Fannie Mae and Freddie Mac, FHA, VA, and non-agency loans. This extensive authority enables convenient servicing transfers.
Customer Reviews
myLoanCare receives strong reviews in certain areas but also some complaints:- Praise for friendly and patient account representatives
- Positive feedback on regular status updates during loan modifications
- Frustration with document submission portals and processing procedures
- Complaints about long initial hold times to reach a representative
Their status updates and account reps receive high marks once borrowers connect with them. However, some process deficiencies lead to borrower confusion upfront.
Comparisons
While Lakeview Loan Servicing and myLoanCare both offer full mortgage servicing capabilities, there are some key differences:Customer Service
- myLoanCare has better reviews for accessible support staff and status updates to borrowers- Lakeview borrowers report long holds, lost documents, and confusion on process requirements
Types of Loans Serviced
- Lakeview services more types of reverse mortgages and specialized loan programs- myLoanCare focuses on high-volume investor loans (GSEs, banks, credit unions)
Borrowers dealing with either company may experience typical frustrations around document submissions and deadlines. However, myLoanCare appears faster at approving workout packages once fully submitted.
Frequently Asked Questions
Many borrowers have questions when their mortgage loan is transferred to a specialized servicer like Lakeview Loan Servicing or myLoanCare. Here are answers to some of the top frequently asked questions:Why was my loan transferred to a special servicer?
When you originated your mortgage, chances are strong the lending bank sold your loan to a bigger investor like Fannie Mae, Freddie Mac, or a Wall Street investment trust. These large-scale investors then hire specialty companies like Lakeview and myLoanCare who have the dedicated staff and technology to service thousands of loans at scale.Should I expect any service changes with these specialized companies?
The transfer should have minimal impact on the way you make mortgage payments or access information. Both Lakeview and myLoanCare have online portals and dedicated customer service lines to support all standard servicing needs. The main adjustments may be getting used to a new account number or payment processing tools.How does the foreclosure process work with these services?
If you fall behind on payments, Lakeview and myLoanCare have dedicated loss mitigation teams trained to reach out with calls and letters on available relief options before any foreclosure referral. This may include forbearance plans, modifications, or extensions first. However, if you remain delinquent without response, they will start formal foreclosure which involves court filings and auction notices.What types of fees or penalties could these companies charge me?
Standard late fees apply if payments are over 15 days past due, generally around 5% of your payment. If your account requires more hands-on attention for modification reviews or foreclosure activities, additional fees of around $500-1,500 may be assessed for those administrative costs.What are my options if I’m struggling financially and can’t make payments?
Both Lakeview and myLoanCare have entire departments focused on loss mitigation assistance. If you proactively contact them regarding hardship, you can submit an application under various modification and relief programs to suspend or lower payments for 6-12 months while getting back on your feet financially.These programs can reduce rates, extend terms, or pause payments - but typically involve providing tax returns, bank statements, hardship letters, and other documentation to verify eligibility. The application process takes 45-90 days.
Can I access information or make payments online with these services?
Yes. Both Lakeview Loan Servicing and myLoanCare have secure online portals for borrowers allowing you to set up automatic payments, manage escrow accounts, download statements & tax documents, and message your account representative. This enables convenient self-service access to monitor your mortgage details 24/7.In what ways could my experience differ between Lakeview vs. myLoanCare?
Based on consumer reviews, borrowers report better experiences with myLoanCare when it comes to the helpfulness of customer service reps and application response times. However, Lakeview may have more flexible or specialized relief programs for certain niche loans like reverse mortgages. So customer service and available options could differ slightly between the two.Conclusion
Lakeview Loan Servicing and myLoanCare play integral roles in managing millions of home loans on behalf of the largest banks, investors, and federal housing agencies. Without the operational capacity non-bank specialty servicers provide, the mortgage industry would suffer major disruptions.For borrowers, the experience with these companies largely depends on your situation:
If you pay loans on time every month, you may barely notice the transition to Lakeview or myLoanCare aside from adjusting to new statements and online portals. They aim to provide continuity for recurring self-service needs.
However, if you start struggling with payments or face financial hardship requiring relief aid, that is where significant process frustrations can develop around document submissions, eligibility delays, and status communication.
Based on consumer feedback, myLoanCare appears faster at approving application packages for immediate relief from payments. Yet for more complex workaround solutions on niche loans, Lakeview provides broader loss mitigation program availability. Wait times to initially speak with a knowledgeable representative seem lower currently with myLoanCare versus Lakeview as well.
Choosing your mortgage servicer is not an option. However understanding their capabilities, program offerings, and customer service reputations enables borrowers to set proper expectations. Lakeview and myLoanCare both enable access to assistance but preparing for bureaucratic headaches around foreclosure prevention packages should be expected. Arm yourself with documentation early and follow up relentlessly for the best chance at a positive resolution.
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