What is Mortgage Servicing?

Mortgage servicing is a term used to describe any of the administrative services you use to keep track of your mortgage. This includes any service to help you track payments, terms, interest rates or balances. All mortgages include some degree of servicing, and these functions may go generally overlooked until they are needed.

Mortgage Servicing in a Crisis

If you have a financial crisis that will require you to refinance, defer or otherwise adjust your mortgage payments, you will become keenly aware of the service options on your mortgage. You likely have a mortgage account manager who will talk you through options. These options can include deferment or forbearance to help you avoid default. 

Mortgage Servicing in a Bank Failure

If your mortgage bank fails, the mortgage will be sold to a new lender. During this period of time, many borrowers can become confused with when and how the mortgage will pick back up with the new lender. Mortgage servicing is essential during this period of time so you understand your grace period and how your loan will continue. Your new lender will take over the servicing of your mortgage, but nothing about your rates or terms should change in the transition.