Understanding mortgage servicers
Sometimes, after you start making mortgage payments, you will
be notified that you need to start writing checks to a different
organization at a different address. This change usually occurs
for one of two reasons: the lender has sold your mortgage to someone
else, or has hired another company to manage your account for
The entity in charge of your account maintenance is called a
mortgage servicer. Mortgage servicers are required to process
your mortgage payments. Unless your servicer is somehow incompetent
(something which is quite rare), their identity matters very little,
at least for your purposes.
Of course, you will need to remember to send the check to a new
address, but servicers are usually pretty forgiving for the first
few months after the switch.
Rest assured that the important things would stay the same. A
new mortgage servicer cannot alter the terms of your original
agreement. That means they can’t raise your mortgage payment,
your interest rate, or otherwise change your contract.
So what does account management involve? For the most part, the
answer is paperwork. Your servicer must send you bills, statements,
and annual summaries relating to your account. Note: Be sure to
hang on to these summaries. Ultimately, they will make your life
a lot easier at tax time.
Furthermore, your servicer will be the ones to contact you if
your mortgage payment is late or short. If you are having financial
difficulties, be forthright so that your servicer can help you
as much as possible.
Whoever your servicer may be, it is important that you maintain
records regarding your account. That way, if any dispute arises,
you will be prepared to sort it out without much additional effort.