Although they may sound exactly the same, your mortgage servicer and lender differ in terms of their role in your home mortgage, specifically:
- A mortgage lender is the financial institution that actually lends the homeowner the money for the loan.
- A mortgage servicer is the administrator of the home loan; managing the tasks regarding a homeowners mortgage after closing. Specifically:
- The servicer collects the homeowners’ mortgage payments, and allocates the correct amount towards the principal, interest and escrow. They also send a homeowner their mortgage statements, as well as to handle day-to-day tasks for managing the home loans.
- Both the lender and the servicer can be a major bank, community bank, credit union or other loan servicing financial institution. Sometimes the lender and the servicer are the same but often they are not.
This is an example of how a Mortgage Lender and Servicer collaborate.
To find who your mortgage servicer is, just look at your monthly statements. You can either receive the statements by mail or online. If you don’t have access to your mortgage statements, visit MERS® ServicerID, it will help you find your current mortgage servicer.
Do I contact my Lender or Servicer if I Need Help Paying My Mortgage?
- If a homeowner fails to pay their mortgage on time, the servicer works with the homeowner to help them get back on track. If that doesn’t pan out, the servicer would help the homeowner with options, such as a Loan Modifications, Foreclosures, Short Sales or a deed in lieu of foreclosure*. Mortgage servicers are the key point of contact for the homeowners, to resolve any problems or confusion around the homeowners home loan.
Other mortgage related terms homeowners should be familiar with include:
- Investor: The person who owns the home loan.
- Regulator: The person who ensures that servicers follow federal regulations
Need more information?
Contact us for any assistance pertaining to Mortgage Servicers and Mortgage Lenders.
**Deed in lieu of foreclosure: Is when a homeowner transfers ownership to their lender in exchange for mortgage debt relief.