What does the process of "mortgage servicing" include?

The process of "mortgage servicing" primarily involves managing a mortgage loan throughout its duration. This includes various responsibilities such as collecting monthly payments from borrowers, maintaining records of the account, managing escrow accounts for property taxes and insurance, and addressing any borrower inquiries or issues related to the loan. The aim of mortgage servicing is to ensure that the loan is administered properly and that the borrower meets their payment obligations.

This comprehensive process is crucial for maintaining the health of the loan and supporting the borrower in complying with the terms of the mortgage. It encompasses not just the collection of payments but also the management of the borrower’s account from the time the loan is originated until it is paid off or otherwise terminated.

Other choices reflect activities that do not fall under the definition of mortgage servicing. For instance, the disbursement of funds to the borrower is a one-time event more related to loan origination rather than ongoing servicing. Evaluating loan eligibility pertains to the application process, and recording changes in property ownership is often managed by title companies or public record offices, not the mortgage servicer. Thus, option B captures the full scope of activities involved in mortgage servicing effectively.