What are mortgage servicing companies?

Most home buyers work with a lender to get a mortgage, but the company that manages your payments and escrow after closing may be different. Learn what a mortgage servicing company does and how it supports you throughout the life of your loan.

Key takeaways:

• A mortgage servicer manages the day-to-day administration of your loan after closing, including payment collection, customer support, and escrow management.
• Homeowners generally cannot choose their mortgage servicer, and lenders often sell or transfer servicing rights to a third party to free up capital for new loans.
• If your mortgage is transferred to a new servicing company, you must be notified at least 15 days before the change. Your core loan terms - such as your interest rate, monthly payment, and balance - will remain exactly the same.

What is a mortgage servicing company?

A mortgage servicer manages your mortgage after closing on a house. This includes sending out statements, processing monthly mortgage payments, managing escrow accounts, and responding to questions.

Sometimes, your lender remains your servicer. It’s also common for your lender to sell or transfer your mortgage servicing rights to a third-party company.

Rocket Mortgage is both a lender and a servicer. Some lenders have Rocket service the loans they originate.

Mortgage lenders vs. servicers

The lender is the financial institution that loaned you the money. The servicer handles your payments and the day-to-day administration of the loan.

Mortgage lenders

What is a mortgage company? A mortgage lender is a bank, credit union, online lender, or other financial institution that offers home loans.

When you apply for a mortgage, the lender will verify your finances and lend you the money to buy a home.

Mortgage servicers

Servicing takes place after you’ve closed on your home. Your servicer will issue your mortgage statements and collect your monthly payments.

You may find your loan's been sold to a third-party servicing company. Mortgage lenders may service your loan or sell the servicing rights.

If your servicing rights are sold, you’ll be notified at closing or at least 15 days before your first payment with the new servicer is due.

After the transfer, you’ll get a 60-day grace period during which you won’t be charged a late fee if you accidentally send your payment to your former servicer instead of your new one.

When you’re transferred to a new servicer, your loan terms won’t change. Your interest rate, monthly payment, and loan balance will remain the same.

Mortgage servicers keep a small, pre-arranged percentage of the interest payment as their management fee, meaning you do not have to worry about a separate bill for their administrative work.

 

What to expect from your mortgage servicer

Mortgage servicing companies manage your loan as you repay it. Here's a breakdown of your mortgage servicer's responsibilities.

Payment management

The primary job of your mortgage servicer is to issue mortgage statements and credit your account for each payment you make.

While basic management is included in your payment, you should review your contract to understand how to handle unexpected administrative costs, such as avoiding mortgage servicing fees for late payments or special statements.

Escrow management

Your servicer will also manage your escrow account, which collects a monthly payment to cover the annual expenses for property taxes and homeowners insurance.

Property taxes and homeowners insurance are separate fees that you owe in addition to your base mortgage loan payment. Rather than requiring you to save up and pay these bills yourself each year, most lenders require or offer an escrow account for convenience. Your servicer estimates the annual cost of your local property taxes, homeowners insurance, and any required mortgage or flood insurance, divides that total by 12, and adds it to your monthly mortgage statement.

Each year, federal law requires your servicer to review your escrow account and ensure the monthly collection matches your actual bills. They will send you an annual escrow analysis statement detailing all the payments made on your behalf and letting you know if changes in local tax rates or insurance premiums will cause your monthly payment to go up or down for the coming year.

Loan support

Your servicer also will answer any questions related to your loan. If you're wondering when you can cancel mortgage insurance or how to make additional payments toward your principal, your servicer will know.

Most servicers offer convenient phone and online support options. Rocket Mortgage provides 24/7 self-service, phone support for new and existing clients, and an online chat option.

If you're a Rocket Mortgage client, don't hesitate to reach out to us with any questions.

Help with affording your payments

If you fall on hard times and are struggling to make your monthly payments, your mortgage servicer is your primary partner for finding relief. In the mortgage industry, this help is officially known as "loss mitigation," but for homeowners, it simply means working out a specialized mortgage assistance plan to protect your home.

Federal rules require mortgage servicers to work with you to explore ways to avoid foreclosure. If you experience a financial hardship – such as temporary unemployment, unexpected medical bills, or a reduction in income – you can submit a mortgage assistance application to your servicer to request relief.

Depending on your financial situation and the rules set by your loan's investor, your servicer can help you navigate several relief paths:

• Forbearance. Your servicer can grant a temporary pause or reduction in your monthly payments to give you breathing room to get back on your feet.
• Loan modification. If your financial setback is permanent, your servicer can permanently alter the original terms of your contract. Loan modification might involve reducing your interest rate or extending your loan term to create a monthly payment you can afford.
• Repayment plans. Your servicer can create a structured schedule that allows you to catch up on missed payments over a set period alongside your regular monthly amount.

The most important step is communication. If you're a Rocket Mortgage client and you're having trouble keeping up with your payments, don't wait until you miss a payment – reach out to our dedicated care team or log into your portal to get help with your mortgage payments right away.

How to find your mortgage servicing company

If you’re wondering who services your mortgage, check your mortgage statement. You also can use the MERS (Mortgage Electronic Registration System) to identify the servicer associated with your mortgage.

Can your mortgage servicer change?

It's not uncommon for your loan to be sold to a different mortgage servicer in a servicing transfer.

If your mortgage gets transferred, you’ll have a new servicer that will handle your payments and questions. You’ll be notified at least 15 days before the transfer and provided with the information you need about your new servicing company.

If your mortgage has been transferred to Rocket Mortgage, we’re happy to have you. You can learn more on our Welcome page.

Can you choose your servicer?

You can choose your lender or refinance to change lenders, but you can’t choose your servicer. The only exception is if you choose a lender that also handles its servicing.

Rocket Mortgage services almost all of the loans we originate, except for jumbo loans.

What Rocket Mortgage offers as a servicer

Since your servicer manages your mortgage over the life of your loan, it’s important to have a good servicer that you’re happy with.

Some of the benefits of home loan servicing with Rocket Mortgage include:

• Fewer servicing fees
• No payment fee
• Several payment options
• 24/7 client portal for self-service
• Helpful mobile app
• Rocket Assist interactive chat
• Interactive voice response (IVR) phone system
• Superior client excellence
• J.D. Power Mortgage Servicer Satisfaction awards¹

In addition to our self-service options, Rocket has team members available to help clients via chat, phone, and email. You can talk to us in the mode you’re most comfortable with. Rocket has a variety of teams trained in specialized processes to ensure there is always an expert to help with any client question.

At Rocket, we're committed to clarity and truth in how we approach client situations and tough conversations. We aim to create a safe space for our clients to express how they are feeling and offer solutions that are adaptable and relevant to each client's situation.

The bottom line: Your mortgage servicer is a crucial point of contact

Your mortgage servicer plays an important role in managing your home loan after closing. While your lender provides the mortgage funds, the servicer handles your monthly payments, escrow account, loan support, and any assistance you may need if financial hardship arises. It’s also common for servicing rights to transfer to another company during the life of the loan, though your loan terms will remain the same. Understanding how mortgage servicing companies work can help you feel more confident managing your mortgage and knowing who to contact with questions.

If you’re ready to buy a home or refinance, you can start your mortgage application with Rocket Mortgage today.

¹ Rocket Mortgage has won more awards than any other brand in the J.D. Power U.S. Mortgage Servicer Satisfaction Studies between 2002 – 2025. Visit JDPower.com/Awards for more information.