Mortgage Servicing Basics
Understand payment collection, escrow, statements, payoff requests, assistance applications and the difference between servicer and loan owner.
Guide collection
Ownership and Servicing
Manage payments, escrow, servicing transfers, mortgage insurance and annual reviews after closing.
When Mortgage Servicing Transfers
Check effective dates, payment addresses, automatic payments, escrow balances and federal transfer protections when a new servicer takes over.
How Mortgage Payments Are Applied
Review principal, interest, escrow, fees, suspense accounts, partial payments and extra-principal instructions.
Mortgage Escrow Accounts
Understand deposits for taxes and insurance, annual analysis, cushions, shortages, surpluses and payment changes.
Escrow Shortages, Deficiencies and Surpluses
Read the annual analysis, verify projected bills and understand the repayment or refund treatment shown by the servicer.
Why a Mortgage Payment Can Change
Trace changes to ARM adjustments, escrow, mortgage insurance, fees or payment corrections rather than assuming the note rate changed.
Private Mortgage Insurance Cancellation
Distinguish borrower-requested cancellation from automatic termination and verify eligibility, payment history and value requirements.
Annual Mortgage Review Checklist
Check statements, escrow, insurance, taxes, beneficiaries, emergency savings, extra-payment goals and refinance claims once a year.
Mortgage Payoff Statements and Selling a Home
Request an accurate payoff, account for daily interest, liens, escrow and recording rather than relying on the principal balance alone.
Assumable Mortgages
Review whether the loan permits assumption, lender approval, release of liability, equity funding and due-on-sale provisions.