Mortgage Servicer

A mortgage servicer is usually an outside company that helps with the processing of the loan, which can include making sure the loan is awarded to the borrower and that the borrower applies the loan to the intended purchase. Processing also includes tracking loan payments, sending reminder notices for missed payments, filing foreclosure documents in the event the loan is in default.

Default is when the payments haven't been paid for a length of time and are unlikely to be paid in the future. If a renegotiation of the terms of the loan can't be worked out, the home loan goes into foreclosure. Foreclosure is a process whereby the bank takes possession of the house and resells it to recoup any losses from the loan.

Mortgage lenders can also be the mortgage servicer. If the lender is set up to handle deposits, such as a bank or financing company, the company can also service the loan. A mortgage servicing company can come into play when a lender cannot hold deposits. Each state has its own laws and regulations as to how mortgage loans are serviced and the roles of banks and service companies.


If you want to know whether a mortgage servicing company is involved in your mortgage, the Consumer Financial Protection Bureau suggests checking the top of your statement or payment coupons for the return address of the company. If the address is not for the bank that originally gave you the loan, it's likely the loan is being processed by a service company. Also, visiting the MERS® Servicer Identification System website might be able to help identify the provider.