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

A lender and a mortgage servicer are two different entities involved in the home buying process. A lender is the person or company that provides the loan to the borrower. The lender provides the funds to purchase the home and also sets the terms of the loan such as interest rate, repayment period, and any other conditions associated with the loan. A mortgage servicer, on the other hand, is a company hired by the lender to manage the loan. They are responsible for managing the account, collecting and processing payments, and providing customer service. They also process requests for loan modifications and foreclosure if necessary. The main difference between a lender and a mortgage servicer is that the lender provides the funding for the loan while the mortgage servicer provides the ongoing management of the loan. A lender is also typically the one who holds legal title to the mortgage, while the servicer is not normally a party to the loan itself. In New York, under mortgage law, all lenders and servicers must be licensed by the state and follow state regulations. This helps to ensure that borrowers are treated fairly and receive quality service throughout the course of the loan.

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

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