Definition
A mortgage servicer is the company that manages the daily tasks of your mortgage after closing. They handle your payments, escrow account, and customer service for your loan.
Understanding the Role of a Servicer
After your mortgage is finalized, the servicer handles monthly payments and manages your escrow account for taxes and insurance. In simple terms, servicers ensure everything runs smoothly behind the scenes. Example: If your monthly payment is $1,500, the servicer distributes this to pay off your loan, taxes, and insurance. It's not the same as a lender. A servicer doesn't originate or fund the loan. Instead, they ensure your account stays in good standing by managing payments and escrow efficiently.
