What is the primary responsibility of a mortgage servicer?

The primary responsibility of a mortgage servicer revolves around managing the loan after it has been closed. This includes tasks such as collecting monthly payments from borrowers, handling customer inquiries, managing escrow accounts for property taxes and insurance, and providing statements and information regarding the loan. The servicer acts as the point of contact for the borrower throughout the life of the loan, addressing any concerns and ensuring that the terms of the mortgage are adhered to.

In contrast, originating new loans is a function typically performed by loan officers or mortgage brokers, which focuses on the initial stages of the lending process rather than ongoing management. Property appraisals for resale fall under the duties of appraisers, who determine property values, and are not part of a servicer’s role. Finally, while some servicers may deal with loans in distress and related issues like bankruptcy, their responsibilities are much broader than just assisting in bankruptcies.