What Is A Mortgage Servicer?

While you pay for your mortgage, you need to know who your mortgage servicer is since they’re not likely the same as your original mortgage lender. You’ll pay your loan more smoothly and get the support you need if you’re knowledgeable about who your servicer is, what they do, and how you and they work together.

Below you’ll find what you need to know about your mortgage servicer to ensure your successful home ownership.

1. What Is A Mortgage Servicer?

Because of how the mortgage market works, your mortgage servicer will take the rights to manage your loan from your original lender after closing.

 

It is the party that collects your payments and handles the customer service of your mortgage. It also handles the accounting and the day-to-day tasks for administering your loan.

2. Are My Mortgage Lender & Servicer The Same?

Your mortgage lender and servicer aren’t likely the same company because they specialize in very different sets of services. Evaluating and originating a new mortgage loan requires separate skills and knowledge from those to service an existing loan.

 

It’s a common practice for your mortgage lender to sell the rights to service your loan to a third-party servicing company. It’s rarely the case that your mortgage lender is also your servicer.

3. What Does A Mortgage Servicer Do?

Your mortgage servicer ensures that every operation of your mortgage runs smoothly until you’ve paid off your loan. It’s also where you contact if you have problems or questions about your loan.

 

Here are some of the tasks handled by your mortgage servicer:

  • Collects, tracks, presents, and reminds you of your payments as well as allocates them to your principal, interest, and escrow (if you have one).
  • Track your mortgage balance.
  • Notifies, tracks, and protects your interests (if you maintain proper insurance coverage).
  • Provides you with the payoff amount, if required.
  • Manages your property, if applicable.
  • Provides you with loss mitigation options when you’re falling behind to avoid foreclosure.
  • Helps arrange a graceful exit in case you can no longer pay the mortgage.
  • Initiates foreclosure upon certain circumstances.

 

If you have other customer service inquiries, make sure to let your servicer know for proper assistance.

4. Do I Need To Know My Mortgage Servicer?

Yes. Your servicer is your primary point of contact for paying back your mortgage and getting support for your problems or questions about your loan.

 

To find out who your servicer is, check your monthly mortgage statements by mail or online. Your servicer is usually the company that sends you the statements.

 

You can also check your payment coupon book by mail at the beginning of your mortgage servicing.

 

You can also use the Mortgage Electronic Registration System (MERS) to find your mortgage servicer. To use this system, enter either your name and security number, your property address, or your unique mortgage identification number.

5. Can I Change My Mortgage Servicer?

Unfortunately, you can’t decide which company becomes your servicer. You can only choose the lender when taking out the loan. You’ll also likely have different servicers during the life of your mortgage.

6. What Should I Do If There’s A Problem?

If a problem occurs, you should contact your servicer directly via phone or mail to resolve the issue. If your servicer fails to provide you with a proper solution, try filing a complaint with the Consumer Financial Protection Bureau (CFPB). If your servicer is a bank, you can also try filing a complaint with the Office of the Comptroller of the Currency (OCC).

Conclusion

It’s essential to know who your mortgage servicer is and how you and they work together to ensure your loan progress goes smoothly. You’ll have better peace of mind when it comes to paying off your mortgage and owning your own home.