A loan servicer is a company responsible for collecting and managing loan payments, managing escrow accounts, and handling other administrative aspects of a loan portfolio.
Loan servicing encompasses the administrative aspects of a loan from the moment the proceeds are disbursed to the borrower until the loan is paid in full. This includes the collection of principal, interest, and escrow payments, as well as handling defaults and foreclosures, if necessary.
A mortgage correspondent services loans for a fee, managing various aspects such as collecting payments, paying real estate taxes, ensuring property insurance, and others.
Mortgage servicing involves the management of a mortgage loan, from collecting payments to ensuring that taxes and insurance are paid. It includes administrative tasks completed by a mortgage banker or a third-party servicer.
