What is the primary role of a mortgage servicer?

The primary role of a mortgage servicer is to manage a loan, which encompasses a variety of responsibilities including collecting monthly payments from borrowers, handling inquiries and customer service issues, maintaining records of the loan, and managing the escrow account for property taxes and insurance. This role is crucial for ensuring that the borrower remains informed regarding their loan status and that all necessary payments are processed in a timely manner.

Unlike property appraisers, who focus on valuing real estate, or financial advisory firms that provide guidance to homeowners, a mortgage servicer’s job is specifically centered on the operational aspects of loans after they have been originated. Moreover, while a bank may issue new mortgages, the servicing of those loans falls to the servicer, which is often a separate entity that manages existing loans instead of creating new ones. This distinction emphasizes the servicer's focus on the ongoing relationship with borrowers throughout the life of the loan, ensuring compliance with the terms and providing support for any financial challenges the borrower may encounter.