What does "loan servicing" entail under Regulation Z?

Loan servicing under Regulation Z encompasses the ongoing management of a loan account after the initial funding process. This involves a variety of essential activities including handling payments, applying those payments correctly, managing escrow accounts, and addressing customer inquiries related to the loan. Proper loan servicing ensures that borrowers understand their payment obligations and can get help with any questions or issues that arise during the life of the loan.

The focus on managing the customer experience and providing necessary support after the loan is originated is a critical aspect of loan servicing, aligning with the objectives of Regulation Z to promote transparency and consumer protection in lending practices. The other options do not capture this broader scope of activities that take place after a loan has been originated.