Mortgage Seminar chapter 13 at Bankrate.com's Elearning Workshop

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Portland, Oregon	August 21, 2008

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CHAPTER XIII -- AFTER THE INK DRIES . . .

LESSON 25: MORTGAGE SERVICING

You've gotten your loan. You've settled into your new home. The whole process is over and you never have to think about mortgages again. Right? Sure ... if you don't mind throwing away thousands of dollars! Smart consumers know to keep an eye on interest rates, the speed with which they're building equity and a number of other things as they pay off their loans. Opportunities to save money -- and pitfalls that can lead to problems making monthly payments -- will pop up over the years. Borrowers would be wise not to ignore them.

Calculate your payment on any loan

First, let's talk a little bit about what happens after closing. As we discussed earlier, many lenders sell their mortgages after making them. When they do that, they often transfer the rights to "service" those loans to other lenders, banks, investors and third-party processing companies. That means an entirely new company will likely be helping you with any mortgage-related problems.

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At closing, your mortgage lender must tell you who the mortgage servicer on your loan will be. That company will do some or all of the following:
•	Collect and process your monthly mortgage payment. The servicer has custody of the escrow account and makes sure the tax and insurance bills are paid. It is the responsibility of the servicer to make these payments on time.
•	Send you a statement at the beginning of each year that shows what portions of your mortgage payments during the previous year were applied to principal, interest, taxes and insurance. The servicer must also inform you of any adjustments in payments needed to cover insurance and taxes for the next year.
•	Forward your payments along to the final investor who owns your loan (if the servicer is not also the loan's owner). The servicer will act as the investor's representative if any problems arise with the loan.
•	Attempt to counsel and assist you in overcoming any delinquency if you start missing payments on the loan.

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TABLE OF CONTENTS

CHAPTER I
Lesson 1
Quiz

CHAPTER II
Lesson 2
Quiz

CHAPTER III
  Lesson 3
  Lesson 4
  Lesson 5
  Quiz

CHAPTER IV
  Lesson 6
  Lesson 7
  Quiz

CHAPTER V
  Lesson 8
  Lesson 9
  Quiz

CHAPTER VI
  Lesson 10
  Lesson 11
  Quiz

CHAPTER VII
  Lesson 12
  Lesson 13
  Lesson 14
  Quiz

CHAPTER VIII
  Lesson 15
  Lesson 16
  Lesson 17
  Lesson 18
  Quiz

CHAPTER IX
Lesson 19
Quiz

CHAPTER X
Lesson 20
Quiz

CHAPTER XI
Lesson 21
Quiz

CHAPTER XII
  Lesson 22
  Lesson 23
  Lesson 24
  Quiz

CHAPTER XIII
  Lesson 25
  Lesson 26
  Lesson 27
  Quiz

CHAPTER XIV
  Lesson 28
  Lesson 29
  Lesson 30
  Quiz

Definitions

RELATED STORIES

What happens when loans are sold

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