Does it matter who your mortgage manager is?


Mortgage service companies matter more than ever

Chances are, the company you’re sending your mortgage payments to isn’t the original loan owner or lender.

Instead, payments are sent to a separate “mortgage service company”.

Mortgage agents tend to be out of sight, out of mind. You usually don’t have to interact with them apart from sending monthly payments.

But when you to do need your mortgage agent’s help – for example, to remove PMI or apply for mortgage relief – you want it to be a good experience.

Here’s what you need to know about mortgage agents, including what to do if you’re unhappy with your business.

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What is a mortgage loan manager?

It may come as a surprise, but many mortgage lenders do not manage the loans they take out.

Instead, they transfer the management rights to another company that handles the ongoing administration of the loan.

This includes receiving and processing payments, managing a client’s escrow account, providing tax forms, assisting with client inquiries, and other tasks.

The mortgage service company also tracks a customer’s payment history and reports that information to the credit bureaus.

Mortgage Managers and COVID-19

Your mortgage manager is also the company you’ll turn to if you need mortgage relief – like a forbearance plan or loan modification – because of financial hardship.

This has been the case for millions of homeowners who have had to suspend payments or update their repayment plan during the COVID-19 pandemic.

A new awareness of their mortgage agent has brought further pain to some homeowners.

Hours – long waits, costly “system problems” and credit report errors are just a few of the loopholes that manifested themselves when mortgage departments dealt with an unprecedented wave of credit applications. loan relief.

As a result, many homeowners will likely pay more attention to the future of their service agent.

So who are the best mortgage service companies? How do you know who is yours? And what should you do if you want another loan manager?

When you work with your mortgage service company

Knowing your mortgage service company is important in the event that you need to interact with the company outside of your payments.

You may need to contact your mortgage agent if:

  • You need to update your home insurance information or ask a question
  • You think your property has at least 20% equity and you want to inquire about deleting private mortgage insurance
  • You’ve been affected by COVID or some other financial setback, and you need to talk mortgage relief options
  • You have lost your job or your income has decreased and you owe ask for abstention to keep your mortgage in good standing

Of course, there’s a good chance none of this applies to you.

And in that case, you can continue to make mortgage payments to your agent without ever having to worry about who that company is or how well its customer service is.

How to find out who your loan manager is

It is important to note that your mortgage service company may change multiple times during the life of your loan.

But it is easy to find the name of the company that is currently handling your loan.

You can locate this information on your mortgage statement or search the electronic mortgage registration system using your name, property address and Social Security number.

When your mortgage agent changes, you will receive a letter notifying you of the change at least 15 days before the date of the transfer.

In addition, the new service agent will send a letter once the transfer is complete.

This letter will contain relevant information such as the name and address of the new provider and the date you will start sending payments to the new company.

Who are the best mortgage loan services?

Some mortgage loan managers have better relationships with their clients than others.

The JD Power Mortgage Agent Satisfaction Study asks homeowners what they think of their mortgage agents in five areas: communication, customer interaction, billing and payment process, and account administration. held captive.

Here are the 15 repairers who ranked first for satisfaction (all scored above average of 781/1000 or more).

The best mortgage service companies for

Mortgage service company Customer satisfaction score1
Quicken Loans 854/1000
Regions Mortgage 846/1000
Huntington National Bank 827/1000
TD Bank 815/1000
chase away 810/1000
M&T mortgage 810/1000
SunTrust Mortgage 808/1000
Bank of America 804/1000
Guild Mortgage 803/1000
Citizen mortgage 802/1000
American Bank 802/1000
PNC mortgage loan 791/1000
Provident financing 790/1000
Union Bank 790/1000
BB&T 787/1000

1Top 15 Mortgage Service Companies According to JD Power’s 2020 Primary Mortgage Service Satisfaction Survey in the United States. See the full report here

Should I be concerned with who my mortgage service company is?

Since mortgage service experiences can vary, some buyers want to know the name of the company that will service their mortgage after closing.

This is understandable. But when shopping for a mortgage, the focus shouldn’t be on the service company. It should be about getting the most affordable loan. This can potentially save thousands of dollars over the life of the loan.

In all fairness, even if your mortgage lender transfers the management rights, you will likely have little (if any) interaction with the management company.

When shopping for a mortgage, the focus shouldn’t be on the service company. It should be about getting the most affordable loan.

Also, keep in mind that many reputable lenders also partner with reputable service companies.

So, if you want to increase the chances of having a positive experience with a mortgage service company, start by getting quotes from well-known and well-rated lenders.

Also, don’t be afraid to ask questions. If you’re concerned about the service, ask if a lender manages their own loans.

If they are transferring your mortgage, get the name of the service company they are using. From there, you can research the company to make sure it has a good reputation and high ratings from its customers.

What to do if you are unhappy with your loan manager

Unfortunately, you don’t have a say in whether a mortgage lender transfers your loan to a service company. They have the right to transfer the loan and decide where it ends up.

Even so, if you are unhappy with your loan officer or are having major problems, you can file a complaint with the Consumer Financial Protection Bureau.

Also, remember that not all lenders transfer their loans to a service company.

Some lenders have the ability to manage their own loans and handle the ongoing administration of those loans. It’s rare, but it happens.

If you prefer a lender who provides their own services, you can apply with any of the following banks:

  • Quicken Loans
  • chase away
  • Union Bank
  • American Bank
  • Flag star

In addition, many local and smaller community banks manage their own loans, as do some credit unions.

Shop for a Mortgage, Not a Mortgage Agent

The bottom line is that you probably won’t have to interact with your loan officer much, if at all.

This means that it shouldn’t be a major concern when shopping for a mortgage.

Choosing the right type of loan, a low rate, and a fair loan term is more important, as these are the things that determine how much you will pay in the long run.

But if you’re concerned about who your server will be, don’t be afraid to ask. If a lender is silent or suspicious of their service partners, that’s probably a bad sign.

But if they do communicate the name (s), you are free to do your own research and decide if this is a repairman you would be comfortable working with.

The information contained on The Mortgage Reports website is provided for informational purposes only and does not constitute an advertisement for any products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, its parent company or its affiliates.

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