Banking & LendingBanking & Lending GlossaryPart 9 of 13
Servicing and Collections Glossary
2 terms from the Banking & Lending book's Servicing and Collections part, each defined in a line and linked to the chapter that explains it.
- Charge-off: removing a loan the lender doesn't expect to collect from its books against the allowance, with any later collections booked as recoveries (The Banking & Lending Business).
- Payment allocation: how one loan payment was applied to fees, interest, principal and escrow under the rule in force that day, stored rather than recomputed (The Banking & Lending Business).