Define: Mortgage Servicing

Mortgage servicing refers to the administration and management of a mortgage loan after it has been originated. This includes collecting monthly payments, managing escrow accounts, handling insurance and tax payments, and addressing any borrower inquiries or concerns.

Yes, your mortgage servicer can change without your consent. Mortgage servicing rights can be bought and sold by lenders, so it is possible for your loan to be transferred to a different servicer. However, you should receive a notice from both your current and new servicer informing you of the transfer.

No, as a borrower, you generally do not have the ability to choose your mortgage servicer. The lender who originated your loan has the right to sell the servicing rights to another company. However, you can request a transfer to a different servicer if you are experiencing issues with your current one.

Yes, mortgage servicers can charge certain fees, such as late payment fees or fees for processing certain requests. However, these fees should be clearly outlined in your mortgage agreement or loan servicing disclosure statement. It is important to review these documents to understand what fees may be applicable.

Yes, if you fail to make your mortgage payments as agreed, your mortgage servicer has the right to initiate foreclosure proceedings. However, foreclosure is typically a last resort, and servicers are often willing to work with borrowers to find alternative solutions, such as loan modifications or repayment plans, to avoid foreclosure.

No, your mortgage servicer does not have the authority to unilaterally change the terms of your loan. Any changes to the terms, such as interest rate adjustments or modifications, would typically require your consent and agreement.

Yes, if you believe your mortgage servicer has made an error, such as misapplying payments or charging incorrect fees, you have the right to dispute it. You should contact your servicer in writing, providing details of the error and any supporting documentation. They are required to investigate and respond to your dispute within a certain timeframe.

Your mortgage servicer may require you to maintain certain insurance coverage, such as homeowners insurance, to protect their interest in the property. However, they cannot force you to purchase insurance from a specific provider. You generally have the right to choose your own insurance provider as long as the coverage meets the requirements outlined in your mortgage agreement.

Your mortgage servicer is responsible for managing your escrow account, which holds funds for property taxes and insurance payments. They cannot refuse to release your escrow funds if you are eligible for a refund or if the funds are needed for their intended purposes. However, they may retain a certain amount as a cushion to ensure sufficient funds are available for future payments.

Yes, if you have a legitimate complaint against your mortgage servicer and have been unable to resolve the issue directly with them, you can file a complaint with the appropriate regulatory agency. This could be a state banking department, the Consumer Financial Protection Bureau (CFPB), or another relevant authority.