What is the main function of mortgage servicing?

The main function of mortgage servicing is to manage the loan after disbursement. This includes a variety of responsibilities that are crucial for both the lender and the borrower. Mortgage servicers handle the collection of monthly payments, manage escrow accounts for property taxes and insurance, and provide customer service support to borrowers. They ensure that the loan is being managed properly throughout its life cycle, which includes monitoring payment schedules, providing statements, and managing defaults if they arise.

While other functions mentioned, such as evaluating a borrower's eligibility for a loan, selling loans to investors, or assisting in loan recovery efforts, are important processes within the broader mortgage lending landscape, they occur at different stages of the loan process. Servicing specifically relates to the ongoing management of the loan after it has already been awarded, making it a critical aspect of maintaining the health of mortgage assets and supporting borrowers in fulfilling their mortgage obligations.