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Loan Servicer
The company that collects your mortgage payments and manages the day-to-day administration of your loan.
Definition
A loan servicer handles the ongoing management of your mortgage after closing. Their responsibilities include collecting monthly payments, managing escrow accounts, processing payoff requests, issuing tax forms (1098), and handling loss mitigation if payments are missed. The servicer may or may not be the original lender — mortgages are frequently sold and the servicing rights transferred to a different company. You have no control over who services your loan. Borrowers sometimes experience issues when servicing transfers, so maintaining your own records of payments and correspondence is important. If you have concerns about your servicer, you can file complaints with the CFPB.
Related Terms
Escrow
An account held by a third party to collect funds for taxes, insurance, or closing costs.
PITIA
The total monthly housing payment: Principal, Interest, Taxes, Insurance, and Association dues.
Closing Costs
Fees and expenses paid at the closing of a real estate transaction beyond the purchase price.
Amortization
The process of paying off a loan through scheduled payments that cover both principal and interest over time.
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