Legal Definitions - mortgage servicing

Mortgage servicing refers to the management and administration of a mortgage loan. This includes tasks such as collecting payments, releasing liens, and paying property insurance and taxes.

Typically, the lender or their agent will perform mortgage servicing for a fee.

• When you make your monthly mortgage payment, the company that receives the payment is responsible for mortgage servicing. They will ensure that the payment is applied correctly and that any necessary taxes and insurance are paid.
• If you sell your home and pay off your mortgage, the mortgage servicing company will release the lien on your property, which allows you to transfer ownership to the new buyer.

These examples illustrate how mortgage servicing involves managing the various aspects of a mortgage loan, from collecting payments to releasing liens. It is an important part of the mortgage process that helps ensure that borrowers and lenders are able to work together effectively.