What's the difference between a mortgage lender and a mortgage servicer?
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Your mortgage lender is the financial institution that originally loaned you the money. Your mortgage servicer is the company that sends you your mortgage statements and handles the day-to-day tasks for managing your loan.
After you’ve taken out a loan from a mortgage lender, it’s common for a different company to take over your loan as the mortgage servicer.
Your loan servicer typically processes your loan payments, responds to your inquiries, keeps track of principal and interest paid, and manages your tax and insurance escrow account (if you have one). The loan servicer can offer options if you are falling behind on payments as well as initiate foreclosure under certain circumstances.