Lender vs. Servicer

What exactly is the difference between a mortgage broker and a servicer?

Answer:

Your mortgage broker would be the financial institution that loaned the money. Your mortgage servicer will be the firm that sends you your reverse mortgage statements. Your servicer also deals with the day-to-day tasks for handling your loan.

The loan servicer generally processes your loan payments, handles borrower inquiries, tracks principal and interest paid, manages your escrow account (if you have one). The loan servicer may possibly commence foreclosure under certain circumstances. Your servicer might be the very same company that actually gave you the loan.

TIP:

To determine who your servicer is, examine your monthly mortgage statement or payment coupon book. If you can’t locate a statement or coupon, you could try the MERS® Servicer Identification System toll-free at 888-679-6377 or browse the MERS® website. MERS is a private company that retains details about mortgages and servicers. Your loan servicer’s id may be indexed by the MERS system.

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