In a securitization, what is the difference between a servicer and a special purpose vehicle?

What will be an ideal response?

As just seen in the previous question due to the SPV (as well as quality of the collateral and credit enhancement), a corporation can raise funds via a securitization where some of the bond classes have a credit rating better than the corporation seeking to raise funds and that in the aggregate the funding cost is less than issuing corporate bonds. The role of a servicer is to see that the loan created through the SPV is serviced. This involves services such as collecting payments from borrowers, notifying borrowers who may be delinquent, and, when necessary, recovering and disposing of the collateral if the borrower does not make loan repayments by
a specified time. Moreover, the servicer is likely to be the originator of the loans used as the collateral. The servicer is also responsible for distributing the proceeds collected from the borrowers to the different bond classes in the structure according to the cash flow waterfall. Where there are floating-rate securities in the transaction, the servicer will determine the interest rate for the period. The servicer may also be responsible for advancing payments when there are delinquencies in payments, resulting in a temporary shortfall in the payments that must be made to the bondholders.