In real estate finance, mortgage servicing refers to the management and administration of a mortgage loan after it has been originated. It involves carrying out the ongoing duties of the mortgagee to ensure the loan remains in compliance with its terms.
Mortgage servicing typically includes collecting monthly payments, maintaining records, ensuring that property taxes and insurance premiums are paid, and releasing the lien when the loan is paid in full. In the event of default, servicing also includes initiating foreclosure proceedings. These functions may be performed by the lender directly or by a separate servicing company acting on the lender’s behalf for a fee.
