What is a Mortgage Servicing Company?
A mortgage servicing company is a company that services the daily maintenance of a mortgage loan. In many cases, after a loan is taken out, and even if that loan is eventually sold to another bank or financial institution, the day-to-day operations is often handed over to another company. In taking this responsibility, the mortgage servicing company gets to take a small percentage of the interest payment, perhaps half a percent. After a payment is received, the mortgage servicing company, or loan servicing company, credits those payments and then sends out a new statement. In some cases, the mortgage servicing company used may change several times during the life of the loan. However, while the mortgage servicing company may change, the bank may that receives the bulk of the payment may stay the same. In the United States, if the mortgage servicing company does change the borrower has some rights that go along with that. First, notification must be made 15 days in advance of the change
