Servicer

Organisation active in structured financial tranactions like project finance and mortgage backed securities. The organisation manages the portfolio of assets on the part of investors, collecting payments due, managing escrow accounts, restructuring and collecting problem/defaulted assets, and periodically reporting on the portfolio to investors. The servicer is almost invariably the originator, but there are standby mechanisms in securitisation transactions that enable the servicer to be substituted should its own weakening financial status potentially threaten investors' interests.