MORTGAGE Blog & ARTICLES
What is a Mortgage Servicing Company?
There are many parties that are often involved in the transaction of mortgages. In the industry of mortgage, there are sales representatives and lenders such as lenders representatives or brokers. Even you have been dealing with them in the past, especially when shopping for mortgages.
What do you think will happen by the time that the deal closes? Will you transfer into your home? As for your part, the lender remains to be the same. The communications are kept intact and there is nothing that changes in the forefront.
By looking at the background, things just changed. When the deal gets closed, the mortgage is now moved to the servicing area or department. The department on business development gets the complete responsibility over the loan. This is now being managed and handled by the loan servicing team.
You could also wonder why renewal rates are being offered by talking over the phone. Why is it that the rates are higher than what are being offered by the sales team? The reason behind this is that the rate is being offered by the servicing team. They have a complete access to various rate sheets as compared to the sales team.
The servicing team has the job of collecting the payments and paying the taxes. They even talk to borrowers from one time to another.
On the other hand, small lenders are offloading the job of mortgage servicing to other companies. This way, they are saving money and running their operations with less operating cost.
Thus, the mortgage servicing company is responsible for undertaking the job of mortgage servicing.
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