As a mortgage servicer, AAREA collects payments from borrowers, remits principal and interest to investors, performs recordkeeping, manages renewals and discharges, performs collections and loss mitigation, and facilitates mortgage enforcement activities with respect to delinquent borrowers. With the proliferation of private mortgage lenders, the decision to outsource loan servicing has become an essential strategic advantage to private lenders large and small.
Have a look at the many benefits to outsourcing loan administration to AAREA. We think you’ll find freedom here.
More robust servicing technology and assistance with regulatory compliance.
The cost of loan servicing technology is not inexpensive for a small lender. Lenders with smaller loan portfolios can leverage our technology and expertise to access a better lending experience. In recent years, the mortgage industry has seen significant changes in the regulatory environment, particularly for syndicated loans. AAREA’s outsourced loan administration and adaptable processes helps lenders stay compliant in a changing regulatory environment.
Saving time and money while focusing on your core business.
Many private lenders do not calculate a comprehensive, fully loaded per-loan cost to service and therefore are not effectively aware of their net return on private loans. Private lenders that have other careers or businesses receive immediate benefits by outsourcing servicing, as their time is much more valuable spent in their career or business than servicing their loans. Funds that currently have in-house servicing teams find that there can be cost savings to outsourcing administration. Syndicators can provide a better experience to their lenders by providing fully serviced loan opportunities.
Optimize your work force.
Individual private lenders often rely on their broker or lawyer if they have an issue with a loan, or worse yet, ignore the problem. AAREA provides private lenders with the opportunity to access a dedicated, expert team for servicing their loan. Our team has serviced billions in private mortgages and are deeply familiar with mortgage enforcement in Canada.
Best practices and strategic plans for addressing non-performing loans.
AAREA has experience in servicing special situation loans, performing workouts, negotiating with borrowers who are in default and navigating through the mortgage enforcement process effectively. We also provide outsourced collections services and work with lenders to create a process for effective enforcement that takes into account the intricacies of their loan portfolio.
Transform customer service.
Customer service is typically one of the highest-cost servicing activities. A core set of best practices allows AAREA to deliver effective customer service while managing costs. Outsourcing servicing to AAREA provides two core benefits: we reduce the need for costly agent-based customer service (often the private lender or their broker) and we deliver agent-based service more effectively. Our entire team is based in Canada and we do not outsource call centre work overseas.
AAREA works with all kinds of private lenders – from individuals with only a few loans, to syndicators, to large funds looking to outsource servicing or collections.
Servicing non-performing loans.
Non-performing loans require a systematic, proactive and focused approach. We develop clear policies and procedures to manage non-performing loans as per each client’s portfolio requirements.
AAREA improves our clients’ lending experience by identifying non-performing loans and rigorously performing work out and legal enforcement of non-performing loans. AAREA also provides restructuring services on non-performing loans.
Our team has expertise in managing performing and non-performing loans, renegotiating loan terms, initiating legal proceedings or foreclosure and/or power of sale actions.
AAREA provides a valuable solution to private mortgage lenders, syndicates and mortgage funds who are currently self-administering. If you are self-administering, we invite you to learn how outsourcing to an administrator can improve your lending experience. We manage loan portfolios professionally and in accordance with regulatory requirements.
Count on us for trusted, ongoing support
Backup servicing is a critical assurance to your financial partners and investors that serviced assets will be fine if the primary servicer’s situation changes. AAREA is a leading private mortgage servicer. We provide great reliability, expertise, and service to private lenders, syndicators and funds.
As a proven servicer capable of providing end-to-end needs, we offer a range of backup servicing arrangements to meet your needs. Through a thorough review of your business, we’ll learn about your specific needs and create a custom solution for your business. We will ensure we’re the best possible fit to be your backup servicer.
Our back up servicing solutions ensure continuity of payments and protect the value of assets for mortgage funds, syndicators and investors in the event of a failure of the primary servicer.
When partnering with us as a back up servicer lenders can benefit from our:
Experience onboarding third party portfolios including commercial and residential mortgages;
Ability to onboard portfolios quickly and accurately;
Customer service standards which replicate or exceed their own;
Expertise in the design and implementation of standby arrangements in varying stages of operational excellence;
Ability to handle regular data feeds to keep critical portfolio information up to date in the event of any operational incident; and
A proven ability to mitigate the risks associated with any minor or major servicing failure.
We have a range of clients across the private lending industry in Canada. We have experience with special situation loans, default management, reverse mortgages, equity participating notes, and multi jurisdictional loans.
Link offers discrete solutions at each of the three stages of standby servicing provision — Cold, Warm and Hot.
An effective back up servicing provision, a servicer that is flexible, agile and ready to scale up at short notice — we deliver on all fronts. We can tailor solutions by asset class and have the capacity to absorb transitions between varying standby servicing states as required.
I love the mortgage administration at AAREA, it makes a private mortgage become institutional. Clients get statements, support and the confidence that their payments & record keeping are done professionally. Administering a mortgage must be done the right way, making sure laws are followed, insurances are kept in place and the peace of mind that if a payment is bounced you have someone looking after your assets.
Camilo Rodriguez CEO, MortgagesLab
Want to be free of costly, inefficient and time-consuming loan administration?