Loan Servicing - The acts a lender performs to protect a mortgage investment, including billing the borrower, collecting monthly payments from borrowers and placing into an escrow account. The lender must then disburse these funds from the escrow account to pay taxes and insurance premiums. The lender must also deal with delinquencies as part of the loan servicing process.In many cases, your loan will be transferred relatively quickly to a loan servicer. It is not uncommon for a loan to be transferred multiple times within months of funding.
Be sure to keep up with where to send your payments and it is a requireemnt for the lender or servicing company give you ample notice of a change in the address where payments are to be mailed.
Mortgage loan servicers will also handle a customer's escrow account if one is required or present.
A mortgage servicer is responsible for collecting monthly loan payments from you and accurately crediting your account.
Loan servicers are covered by the Fair Debt Collection policies of the FTC. Your mortgage servicer is considered a debt collector under federal law Only if they acquired your loan while it was in default. If this is the case, you have additional rights which you should speak with your mortgage professional about.
