Remittance report
A remittance report is the periodic statement a servicer sends a loan’s owner showing what borrowers paid, what was passed on, fees deducted, balances, draws and any delinquencies for the period.
How a remittance report works
When one party services a loan that another owns, the servicer collects payments and remits them to the owner, usually monthly. The remittance report explains the money: for each loan, the interest and principal collected, late fees, the servicing fee retained, the net amount sent, the ending balance, draws funded, payoffs and anything past due. In securitizations, Regulation AB requires similar distribution and pool performance information to be reported to investors each period.
For private loans, owners also expect notes on loans that need attention: a borrower asking for an extension, a stalled rehab, a missed insurance renewal.
Why it matters to a private lender
If you service loans that a capital partner or note buyer owns, the remittance report is how they judge you between deals. Accurate, on-time reports that tie to the cash they received build confidence; reports that are late or don’t reconcile make partners hesitant to fund your next loan. Set up your servicing system to produce them before you need them.
Example
Hypothetical. A lender services five loans for one capital partner. On the 15th it remits the month’s collected interest less its agreed spread and fees, with a report showing each loan’s payment, balance, draw activity and one 10-day late payment with the borrower’s cure date.
See what partners look for in servicing and reporting capital partners expect.
Where Lender Capital fits
Lender Capital places first-lien, business-purpose real estate loans with capital partners. You apply once, then submit each loan with the full file. We send it only to capital partners whose criteria it fits, one partner funds the whole loan at closing and it is assigned to them. You keep your points (less the placement fee), earn the spread above the partner’s rate and service the loan. You pay a placement fee only when a loan funds.
Lender Capital is a business-to-business platform. This page is general information, not legal, tax or securities advice. Terms of warehouse lines and other funding sources vary by provider; confirm them with each provider and your counsel.