What are a mortgage broker, lender and servicer?
A mortgage broker is a middle man who sells mortgages on behalf of lenders. Lenders fund mortgages, which are then usually packaged and sold to investors. Mortgage servicers are the companies that manage or service your loan. They collect and process payments, among other activities. After a mortgage is originated by a mortgage bank or mortgage broker, the loans need to be managed or serviced on an ongoing basis. This responsibility falls on the shoulders of a mortgage servicer, which operates independently from the entity that originated your loan. Some lenders have servicing divisions. Servicers are usually the first party with whom you will discuss your loan and any problems that you may have in making your mortgage payments.
