Post-Purchase: Mortgage Servicing

The mortgage servicer is the company that handles the day-to-day tasks for managing your loan. Typically, this includes processing loan payments, responding to your inquiries, keeping track of principal and interest paid, managing the escrow account (if applicable), and sending you your mortgage statements. A servicer may or may not be the same company that originated your loan.

You can identify your servicer by checking your monthly mortgage statement or payment coupon book. If you cannot find a statement or coupon, you can try the Mortgage Electronic Registration System (MERS®) Servicer Identification System toll-free at (888) 679-6377 or visit the MERS® website

Borrowers can search for their servicer information on the MERS® website using one of the following:

• MERS® System Mortgage Identification Number (MIN)

• Property Address Only

• Borrower Name and Property Address

• Borrower Name, SSN and Property Zip Code

• VA Case Number

*MERS is a private company that maintains information about mortgage loans and servicers. VA encourages borrowers to contact their servicer to resolve any concerns they have with their existing mortgage. Each servicer determines the best approach to fit individual borrower circumstances and are required to comply with all applicable local, State, and Federal laws, such as the Real Estate Settlement Procedures Act (RESPA) 7, and regulations governing the VA Home Loan Program.

You may also call 1-877-827-3702, to contact the nearest VA Regional Loan Center and speak with a VA representative regarding your individual home loan situation for counseling and guidance. Even Veterans without a VA home loan can call the VA Regional Loan Center for questions about their loan.

If you have any unresolved disputes with your servicer (e.g., not applying payments, double billing, transferring loan without a 15-day notice, etc.) you can contact:

• VA at 877-827-3702, or

• Consumer Financial Protection Bureau (CFPB) at https://www.consumerfinance.gov/aboutus/contact-us/ or 1-855-411-2372

Do I pay the same company that closed my loan?

Not necessarily. Some companies lend to borrowers and service (collect payments on) loans. It’s also common for lenders to sell mortgages or to pay another company to service their loans.

Escrow Accounts

Sometimes called an impound account, an escrow account is an account set up by a mortgage lender to pay certain property-related expenses. The mortgage servicer manages the account and takes a portion of the mortgage payment to pay for taxes and homeowners insurance.

7 RESPA: https://files.consumerfinance.gov/f/201503_cfpb_regulation-x-real-estate-settlement-procedures-act.pdf

Note: Although principal and interest (P&I) remain the same, property taxes and insurance premiums can change from year to year. Escrow payments and with it, your total monthly payment – will change accordingly.

Things to keep in mind about your escrow account:

• Read your annual escrow statement. This tells you what you owe or are owed at the end of the year.

• If you do not have an escrow account, you are still responsible to pay taxes and insurance

• Failure to pay your state or local taxes may result in a tax lien on your home and you could face foreclosure.

• If you have automatic payments for your escrow, be sure to understand how your servicer will change monthly payments when escrow shortages and surpluses occur.

More information on escrow accounts is available at: https://www.consumerfinance.gov/askcfpb/what-is-an-escrow-or-impound-account-en-140/