A: “Servicing” refers to the collection of your principal, interest, and escrow payments (if any), as well as sending any monthly or annual statements, tracking account balances, and handling other aspects of your mortgage loan.  Within three business days of application, lenders are required to provide you with a statement regarding their mortgage servicing practices.  This disclosure will tell you if they will transfer the servicing, if they will not transfer the servicing, or if they may transfer the servicing.  If the lender does initially retain the servicing and transfers it at a later date, they are required to provide you with notice of the transfer at least 15 days before its effective date.

For answers to all your mortgage questions, please give us a call at (616) 559-4535.

Cindy Lowman
President of United Bank Mortgage Corporation