What are the differences between a lender and a mortgage servicer?

A lender and a mortgage servicer are two different entities in the mortgage process. A lender is the entity that originates a loan by approving you for the loan and providing funds for the purchase of a home or refinance of a current loan. The lender is typically a bank, credit union, or other financial institution. A mortgage servicer is the entity that handles the administration of the loan. This includes collecting payments from the borrower, sending notices, processing requests for modifications, and handling escrow accounts and other loan-related activities. Mortgage servicers are usually different from the lender, but they work together to assist the borrower in managing the loan. The primary difference between a lender and a mortgage servicer is the function they provide. Lenders provide the funds for a loan and approve the loan. Mortgage servicers, on the other hand, are responsible for managing the loan. They are responsible for collecting payments, discussing loan modifications, and handling other administrative tasks related to the loan. In Maine, mortgage lenders and servicers are governed by a variety of federal and state regulations. These regulations ensure that lenders and servicers are providing fair and responsible lending practices. Ultimately, the differences between a lender and a mortgage servicer come down to the role they play in the loan process and the regulations that govern their activities in the state of Maine.

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What are the differences between a lender and a mortgage servicer?

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