The industry evolved out of necessity. Brokers and Originators would fund a Hard Money Loan themselves or with Private Investor money, or individuals would do a Hard Money Loan to friends or family. Unfortu
nately, once the Loan was closed, they were then burdened with the servicing functions of tracking payments, interest, late pays, and then handling Collection, Workouts and then Foreclosure if the Workouts failed.
Private Money lenders simply didn’t have the time, up to the minute servicing compliance knowledge, systems and tools to handle Loan Servicing or Collection, Workout and Foreclosures, nor did they want the expense or liability that comes with In House Servicing or Collection. The best way to focus on continued lending was to outsource the Loan Servicing. FCI was founded in 1982 when a number of these Hard Money lenders asked for help doing Loan Servicing and Collection or Foreclosures on their Private Money Loans. FCI is the Sub-Servicer acting at the direction of its Lender Clients (Owner of the Note).