Mortgage Sub Servicer and Your Rights
Mortgage Servicing and Your Rights
servicer is a company that collects your mortgage payment each month and
holds your escrow account for tax and insurance payments. A sub servicer
is a company that performs this work on behalf of another company.
Mortgage sub servicers not only collect mortgage payments from borrowers, but they also hold the escrow accounts for paying taxes and insurance. The mortgage sub servicer is responsible for paying the borrowers' taxes and insurance from the mortgage escrow or impound account when due.
Mortgage sub servicers are responsible for receiving monthly payments from
borrowers but they are also responsible for contacting the borrower when the
payment is not received. Known as collection, the mortgage sub servicer will
contact the borrower as soon as a mortgage payment becomes delinquent. If
necessary the sub servicer will send the borrower's house to foreclosure and
perform all of the related tasks.
Rules about transferring mortgage servicing.
Sub servicers are regulated by the federal government and must provide certain disclosures to borrowers. If the borrower's servicing is transferred to another sub servicer the borrower must receive written a Notice of Transfer 15 days prior to such transfer.LendingTree