The company that manages your mortgage account day-to-day — collecting payments, managing escrow, handling payoffs, and administering delinquencies.
Full Definition
The mortgage servicer is the company that handles the administrative side of your loan after it's originated. They collect your monthly payments, apply funds to principal and interest, manage your escrow account, issue year-end tax statements, and handle payoffs when you sell or refinance. The servicer may be the same company that originated your loan or a completely separate company — lenders frequently sell servicing rights. You must be notified if servicing is transferred. If you fall behind on payments, you deal with the servicer for loss mitigation options (forbearance, loan modification). Servicers are regulated by the CFPB and must follow specific rules for handling delinquencies and forced-placed insurance.
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