What is Mortgage Servicing?

What is Mortgage Servicing?

What is mortgage servicing? What does a mortgage servicer do? Why did my lender choose Shellpoint to service my mortgage? Does my mortgage servicer own my loan? Can I choose a different loan servicer? Find out the answer to all your questions below!

What is “mortgage servicing?” 

Mortgage servicing is a business few people talk about—and even fewer know much about. From a homeowner's perspective, a mortgage servicer is simply the company you send your mortgage payment to. Sometimes your servicer is the lender that originated your mortgage or the investor that owns your loan. But lenders often choose to outsource the servicing of their mortgages to a third-party company—like Shellpoint. 

What does a mortgage servicer do? 

We manage your mortgage account and collect your payments (usually made up of principal, interest, and escrow amounts). We then pay your property tax and home insurance bills (if your loan has an escrow account), and we send the principal and interest portion to the lender or investor that owns your loan. If you ever fall behind in your payments, we work with you to help you avoid foreclosure and get current once again. 

Why did my lender choose Shellpoint to service my mortgage? 

We service mortgages for some of America’s top banks, mortgage companies, and real estate investment firms. One of the main reasons they trust us to manage their mortgages is our reputation for creating an outstanding mortgage servicing experience for homeowners. Our Customer Care team is dedicated to serving you with dignity, respect, and compassion. 

Does my mortgage servicer own my loan? 

The short answer is “sometimes.” If you make payments to the same company that originated your mortgage, then the same company owns and services your loan. But many lenders select a third-party company—like Shellpoint—to service their mortgages. As a third-party servicer, we do not own your mortgage; we simply manage your account and collect your payments. 

Can I choose a different mortgage servicer? 

No, you can’t choose your mortgage servicer; that decision is made by the lender or investor that owns your loan. The only two ways to stop having your loan serviced by a particular company are: 

    • Pay off your mortgage. That way, you own your home free and clear of any loans or debts. 
    • Refinance your loan. But depending on the lender you refinance with, your servicer may change—or may not. Remember: The owner of your mortgage decides which company services your loan.