Mortgage Servicer

A mortgage servicer is mortgage company that monthly payments get paid to. They may not technically own the home loan. Rather, they are the company that collects the payments and is the point of contact for the homeowner.

It takes a ton of money to service a loan. To keep the loan means you forfeit the immediate cash flow realized by “selling” the loan. A loan is a valuable asset.

 

mortgage servicers may not originate loans

see mortgage banker vs. mortgage broker

How do mortgage servicers make money

Auto-drafts

Recast

They’ll only talk to the borrowers on the loan, not on title

A mortgage servicer typically only communicates with the person on the note. For example, if a husband and wife own a home together and the loan was done soley in the husband’s name, the mortgage servicer won’t provide any details to the wife since she’s not on the loan. (We know, that’s messed up.)

Adding and removing escrows

Servicing Department contact info