What is a Mortgage Servicer?
A mortgage servicer is the company that borrowers pay their mortgage loan payment to.
The duty of a mortgage servicer varies, but typically includes the acceptance and recording of mortgage payments; payment of taxes and insurance from borrower escrow accounts; negotiations of workouts and modifications of mortgage upon default; and conducting or supervising the foreclosure process when necessary.
When you get a mortgage, you may think that the lender will hold and service your loan until you pay it off or sell your home. That’s often not the case. In today’s market, loans and the rights to service them often are bought and sold. In many cases, the company that you send your payment to is not the company that owns your loan.
The Montana Board of Housing recently began to service our own loans. We are proud and excited to be able to serve our customers in this way; giving personal attention to each loan.
A home is one of the most expensive purchases you’ll make, so it’s important to know who is handling your payments and that your mortgage account is properly managed. The Federal Trade Commission (FTC), the nation’s consumer protection agency, wants you to know what a mortgage servicer does and what your rights are.
Mortgage Servicers: Their Responsibilities; Your Rights
A mortgage servicer is responsible for the day-to-day management of your mortgage loan account, including collecting and crediting your monthly loan payments, and handling your escrow account, if you have one. The servicer is who you contact if you have questions about your mortgage loan account.