Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
Account-centric enterprise content management solutions allow users to access account holder information based on their account numbers.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
Agentic AI refers to artificial intelligence systems that can autonomously plan, reason, make decisions, and take action to achieve specific goals with limited human intervention.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
API is short for “application programming interface.” Technology companies like Alogent rely on APIs to connect multiple software applications, thereby enabling a two-way exchange of information to support users’ needs.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

A loan servicing specialist manages elements of consumer or commercial loans from the time immediately after consummation through pay-off. Some financial institutions retain loan servicing in-house, while others sell this off to a third party.

Initial Loan Servicing Tasks

Immediately after a loan is consummated and booked to the core, the duties of loan servicing specialists (sometimes referred to as loan administration assistants) begin. Depending on the bank or credit union’s processes, all the documents in the loan file will be reviewed for missing signatures or initials and notate any other custom exceptions. Then, all paper documents in the loan file are scanned and digitally organized. Loan servicing specialists also set expiration dates for tracking recurring items, such as insurance and UCC filings, and confirm that collateral is perfected.

Ongoing Loan Servicing Specialist Activities

Once a loan has been processed, the financial institution relies heavily on loan servicing specialists to monitor the account. Some of their responsibilities in this stage can include:

  • Paying property taxes on escrowed accounts
  • Issuing past-due and cure letters
  • Analyzing escrow to notify customers of shortages or overages
  • Managing escrow rate changes and sending notification letters
  • Collecting payments
  • Processing paid loans, which entails releasing collateral, contacting the account holder’s insurance company to inform that the lien has been removed, and (in the case of an auto loan) sending a title to the borrower

Checks and Balances

Loan servicing specialists work in tandem with lenders to resolve and clear exception reports; this serves to ensure compliance and minimize risk. Typically, the loan servicing department produces exception reports, and then the lender contacts the borrower to resolve any issues. Additionally, the loan servicing department directly receives documents, such as recorded deeds of trust and insurance policies. Depending on the financial institution’s document management system’s capabilities, scanning these into the system could automatically clear the exception and remove that item from the lender’s exception report.

Resources for Loan Servicing Specialists

Looking for more information for or about loan servicing specialists? Be sure to check out our extensive resource library with free spreadsheets, whitepapers, videos and eBooks.

Browse our banking definitions page for more terminology.

Explore more resources

Related articles

Wednesday 22 July 2026

Fraud Prevention is a Growth Strategy: The Connection Financial Institutions Can’t Ignore

Fraud is no longer just a cost to manage—it’s a growing, multi-channel threat that drains resources, erodes trust, and impacts profitability far beyond the initial…

Read the Blog

Monday 20 July 2026

ECM Migration for Banks and Credit Unions: 3 Key Phases for a Successful Conversion

Switching from one ECM to another can seem like an impossible endeavor. Migrating thousands of documents, integrating various banking applications, and retraining users takes time…

Read the Blog

Tuesday 14 July 2026

[Playbook] Secure & Auditable Document Collection with Alogent Document Portal

Alogent Document Portal redefines how banks and credit unions collect and manage documents, replacing scattered emails and disconnected file-sharing tools with a secure, streamlined experience…

Read the Blog

Tuesday 7 July 2026

Breaking Down Fraud Silos: Why Cross-Channel Visibility Is Critical to Stopping Deposit Fraud

Fraud is no longer confined to a single channel. Today’s threats move seamlessly across mobile, ATM, and branch transactions, exploiting gaps in visibility. For banks…

Read the Blog

Monday 29 June 2026

Document Retention: A Growing Blind Spot for Compliance

Regulatory changes, evolving policies, and growth often create document retention blind spots that increase compliance risk, especially when institutions rely on manual tracking tools like…

Read the Blog

Thursday 25 June 2026

Enabling Faster, More Confident Decisions at the Teller Line

Physical branches remain essential, especially for onboarding and high‑value interactions, but outdated, siloed teller systems create friction, limit visibility, and delay fraud detection. As expectations…

Read the Blog

Wednesday 17 June 2026

Network Drives vs. ECM: Why Financial Institutions Need Secure, Scalable Document Management

Network drives offer a basic step toward digitization but quickly create challenges with organization, compliance, security, and reporting, especially as document volumes and complexity grow…

Read the Blog

Monday 15 June 2026

What Aging Exceptions Reveal About Your Lending Operations

Aging exceptions, such as unresolved collateral or covenant issues lingering beyond 90 days, create significant risk and often signal breakdowns in lending operations. Many institutions…

Read the Blog