What does "loan servicing" refer to?

Loan servicing refers to the management of a loan after it has been issued. This includes a variety of tasks essential for maintaining the loan throughout its term. Key responsibilities in loan servicing involve processing payments, providing customer service, managing escrow accounts for property taxes and insurance, and handling communication with borrowers regarding their loan status. Essentially, it encompasses all the administrative functions required to ensure the loan is properly managed until it is fully paid off or terminated.

In contrast, the process of issuing new loans pertains to the origination stage, which is not part of loan servicing. The termination of a loan refers specifically to concluding the loan agreement, which is also separate from ongoing management tasks. Lastly, evaluating a borrower's credit score is part of the underwriting process prior to loan issuance, and therefore, is not related to the actual servicing of an existing loan. Thus, the correct answer emphasizes the ongoing management that characterizes loan servicing.