Loan Servicing

Definition: Loan servicing is the ongoing administration of a loan, including receiving payments, maintaining records, and managing escrow when applicable.

Example

The servicer sends statements, credits payments, and administers the borrower's tax and insurance escrow account.

Keep the distinction clear

The servicer may not be the original lender or current loan owner. A servicing transfer is not the same as changing the borrower's loan terms.

Related terms

Mortgage Lender · Assignment of Mortgage · Escrow

Keep studying

Mortgages: Borrower, Lender, Ownership, and Key Clauses

References: CFPB: mortgage key terms

Pronunciation (US): LOHN SUR-vis-ing (capitals show stress)

Pronunciation reference: Merriam-Webster