What Is Mortgage Servicing?

Ever heard the term “mortgage servicer” thrown around and wondered what it means?

Imagine you just bought your dream house and took out a loan to pay for it. The company you borrowed the money from is called the “mortgage lender.” Now, once you start making those monthly mortgage payments, they don’t always go directly to the lender. Instead, they’re often handled by another company called the “mortgage servicer.”

So, the mortgage servicer is basically the middleman between you and the lender. They collect your payments, keep track of your loan account, send you statements, and handle things like escrow for property taxes and insurance.

Now, why is knowing this important? For starters, your mortgage servicer is the one you’ll be dealing with whenever you have questions or issues about your loan. They’re the folks you’ll need to contact if you want to change your payment plan, request a loan modification, or just need some help understanding your mortgage terms.

Plus, your mortgage servicer plays a big role in your financial life, so it’s important to stay informed about who they are and how they operate. Understanding how they handle your payments and manage your loan can give you peace of mind and help you stay on top of your homeownership journey.