What Do Mortgage Servicers Do?

Mortgage servicers collect homeowners' mortgage payments and pass on those payments to investors, tax authorities, and insurers, often through escrow accounts. Servicers also work to protect investors' interests in mortgaged properties, for example, by ensuring homeowners maintain proper insurance coverage.

How much do mortgage servicers get paid?

Loan servicers are compensated by retaining a relatively small percentage of each periodic loan payment known as the servicing fee. The typical servicing fee is 0.25% to 0.5% of the remaining mortgage balance per month.

What is the role of a servicer?

A mortgage servicer is usually an outside company that helps with the processing of the loan, which can include making sure the loan is awarded to the borrower and that the borrower applies the loan to the intended purchase.