Mortgage Servicers Facts and Resolutions

First off I want to clarify what “Mortgage Servicing” is:

Mortgage Defined

Mortgage Defined

Many borrowers confuse mortgage servicer with their lender and that is not always the case.  A mortgage servicer is the company that you pay your monthly mortgage payments to.  They also can perform other services (i.e. payment of real estate taxes, homeowners insurance, loan modifications etc.) the servicer is not always the owner of your mortgage.

Your mortgage servicer oversees:

Escrow Accounts (real estate taxes & homeowners insurance) –  Escrow accounts are set up and the figures are included in the monthly payment you make to your lender / servicer.  Then your lender / servicer will make the payments when they come due.   By law you will receive a yearly statement breaking down the dates and amounts that will be made.

Posting Payment – The servicer must post payments the day they are received.  Keep detailed records of your payments in case at some point you need to dispute either a payment reported late or late fees charged by the lender.

Transfer of Mortgage Ownership – In a previous blog I posted about ownership transfer of your mortgage and what you need to be aware of if you receive notice that your loan has been transferred.  For details http://cindyseely.com/?p=130

Private Mortgage Insurance (PMI) – RESPA has no jurisdiction over the lender’s decision to require PMI. Nor does it have any jurisdiction over the lender’s decision to cancel PMI. (The PMI Act provides information regarding cancellation of PMI.).  RESPA has no jurisdiction over the lender’s decision to require PMI. Nor does it have any jurisdiction over the lender’s decision to cancel PMI. (The PMI Act provides information regarding cancellation of PMI.)

If you are having problems with your servicer and the problems are valid I would suggest you file a complaint with the servicer. The servicer has 60 days to respond to you.  Write a letter to your servicer and call it a “qualified written request under Section 6 of RESPA.” It should be a separate letter and not mailed with your payment. The mortgage servicer must respond to you within 60 business days of receipt. (See Sample Written Complaint to Lender.)

If that would not work out to your best interest in resolving the problem then I would suggest contacting the lender / services Ombudsman.  Now I am sure many of you have not heard the title Ombudsman before so here is the definition:  An Ombudsman is a neutral party who confidentially, neutrally and independently prevents or resolves problems, complaints or issues brought to him/her by individuals or groups and brings about systemic change where needed. The title ‘Ombuds’ is often used as a gender-neutral substitute for ‘Ombudsman’.

The best way I have found to find the ombudsman is either to ask your lender / servicer and they might well hang up on you! LOL You can also Google the lender / servicer name along with ombudsman, contact the FDIC, or Federal Reserve Bank.

If I can be of any further assistance or you have questions please let me know.

 

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