There is no business reason to provide quality service to borrowers. For many years I have been reading articles in the trade press about how all this was about to change. Mortgage servicers have discovered, or so it was claimed, that all these borrowers in their servicing files were potential customers for new services. Except in isolated cases, this vast untapped market has remained untapped. The one significant exception has been widespread efforts to alert borrowers to the possibility of a cost-reducing refinance.
The focus of these efforts is to identify borrowers who are likely to refinance with someone else, so that the existing servicer can retain them. This hardly qualifies as quality servicing. This may happen some day, but I would not hold my breath. Sign up to Receive New Articles. And in that case, you might continue making mortgage payments to your servicer without ever having to worry about who that company is or the quality of its customer service.
You can locate this information on your mortgage statement, or you can search the Mortgage Electronic Registration System using your name, property address, and Social Security number. Power's U.
Primary Mortgage Servicer Satisfaction Study. See the full report here. Since mortgage servicing experiences can vary, some homebuyers want to know the name of the company that will service their mortgage after closing. This is understandable. These lenders often hand that task off to a loan servicing company. Mortgage lenders handle the origination and funding of the loan. The origination process includes:. Your closing documents may indicate that your loan is to be transferred, or, you may be notified after closing.
Mortgages servicers pick up where mortgage lenders leave off. Once you close on a mortgage, the servicer takes over the ongoing administration of the loan, including:. Your mortgage servicer might also report your loan payment history to the credit bureaus, so if you suspect an error, contact your loan servicer, not your mortgage lender. In most cases, your mortgage lender must send the letter at least 15 days before the effective date of the transfer. The new servicer must send their letter within 15 days following the effective date of the transfer.
Keep in mind that for 60 days after the transfer, you cannot be charged a late fee if you mistakenly send your mortgage payment to the lender instead of the servicer. Your loan servicer may change more than once during the life of your home loan, and you might not have access to your loan documents when you need to contact this company.
If so, you should be able to find your servicer on your mortgage statement, either mailed to you or online. You can also contact your mortgage lender and ask where your loan was transferred. You can call toll-free at or visit the MERS website. The quality of your mortgage servicer can have a big impact on your borrowing experience. A great servicer keeps accurate records, is easy to contact and has helpful staff for things like canceling mortgage insurance, avoiding foreclosure and answering questions.
If you want to avoid mortgage servicing companies, you can choose to deal only with lenders that service their own loans. By law, lenders must provide a Mortgage Servicing Disclosure Statement when you apply, which tells you whether they intend to service the loan or transfer it to another lender, as well as includes information about complaint resolution.
Mortgage servicing is mostly automated, and it usually goes smoothly. This is where bank and credit union executives, investors and fintech executives come to pitch, partner and get deals done in a series of high impact meetings and networking events.
There are no panels or keynotes. Just business. To Apply, Click Here. Short take: There are lots of takes to be had on this one. Bloom Credit launched automated furnishment to the three national credit reporting agencies. Hopefully solutions like this make that prioritization decision easier. Banking as a service provider Synapse plans to offer its customers white-labeled credit products. Check out Fintech Fire Alarms , for the details.
Alex Johnson is a Director of Fintech Research at Cornerstone Advisors , where he publishes commissioned research reports on fintech trends and advises both established and startup financial technology companies.
LinkedIn: Linkedin. He is Danish. And he seems like a chill guy. For much more analysis on the history and evolution of the U. Over time, that year loan term would stretch out to 30 years, which is the current industry standard. MSRs are their own distinct asset class, separate from mortgage-backed securities.
MSRs are valued based on an analysis of how likely borrowers are to make their payments and how long they are likely to be making those payments for.
Prepayment i. Fintech Takes Subscribe Sign in. About Archive Help Sign in. Share this post. Reimagining Mortgage Servicing It's not technically broke, but we badly need to fix it. Alex Johnson. And so, I present to you a story about mortgage servicing, in three parts. Part I: How we got here. Thomas Jefferson: The small landowners are the most precious part of the state.
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