The Servicing of Your Mortgage

Last updated: February 4, 2016

A Mortgage Servicer is the Company That Handles the Day-to-Day Tasks of Managing Your Loan:

  • Processes payments
  • Responds to borrower's questions
  • Keeps track of principal and interest paid
  • Manages the escrow account
  • Can initiate loan changes, other loss mitigation options, or foreclosure if a borrower becomes delinquent

Know Who Your Servicer Is at All Times

  • One company can own your loan and sell only the Mortgage Servicing Rights to a company who will service your loan
  • Generally, the borrower has no say in choosing their Mortgage Servicer
  • Often, Mortgage Lenders sell loans to investors, and the investor chooses the Mortgage Servicer

If the Servicing Rights for Your Loan Are Sold the Current Servicer and the New Servicer Must Notify You of the Transfer

  • Failure to send your payments to the right servicer after you receive notification, could result in your payments not being credited properly. This may harm your credit score as well as the rates available to you in the future.

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