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What is the difference between a servicer and a lender?

April 26, 2017difference Lender Servicer

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What is the difference between a servicer and a lender?

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When you first obtained your mortgage, you worked with a lender who provided the funds for your loan. A servicer collects your monthly mortgage payments, and if you have an escrow account, they also pay the taxes and homeowner’s insurance on your behalf. The servicer may be a different company than your original lender. The terms lender and servicer are often used interchangeably, but you should always contact the company that you are sending your payment to.