What is a “Loan Servicer?” Is my loan servicer the same as my lender or investor?
Your loan servicer is the financial institution that collects your monthly mortgage premiums and has duty for the direction and accountancy of your mortgage. It is imaginable that the owner of your mortgage also services it. However, numerous loans are possessed by groups of investors and these investors hire loan servicers to engage with homeowners as their representative. Many lenders as well have the loan servicers handle all communication with homeowners. Customarily, banks used funds deposited in customers’ savings accounts to make loans. They held the loans, earning the interest as homeowners repaid over time. Banks were thus limited in the total of loans they could make because they had to await to make new ones until savings deposits grew or existent homeowners paid back their loans. Many households who hoped to own a home were incapable to do so since there was not a steady supply of cash for banks to advance. Over time, banks started to turn loans into money by pooling large
Related Questions
- If a servicer tells the counselor that a loan cannot be modified because the eligibility requirements were not met, or the investor is not participating in HAMP, what should the counselor do?
- How Does the Lender/Investor Decide the Maximum Loan Amount That I Can Afford?
- How do I distinguish between the lender, loan holder and servicer?
