Mortgage Servicing

Escrow analysis is the servicer's review of the escrow account to determine whether projected taxes and insurance collections are sufficient.

An escrow cushion is the extra amount maintained in an escrow account beyond the immediately projected bills to help prevent shortages.

An escrow shortage means the escrow account does not contain enough money to cover the expected taxes and insurance bills.

An escrow surplus means the escrow account holds more money than is needed for projected taxes and insurance obligations.

Force-placed insurance is coverage obtained by the servicer or lender when required property insurance appears to be missing or lapsed.

Grace period is the short period after the mortgage payment due date when a payment may still avoid a late fee.

A late fee is a charge that may be added when a required mortgage payment is not made on time under the loan and servicing rules.

A mortgage recast is a payment recalculation on an existing loan after a large principal reduction, without replacing the original mortgage.

A mortgage servicer is the company that manages the loan account after closing, including payment collection and escrow administration.

Mortgage servicing terms that explain who collects payments, manages escrow, and handles borrower accounts after closing.

A mortgage statement is the regular account statement showing the borrower's payment amount, balance details, and servicing information.

A partial payment is a mortgage payment that is less than the full amount required to bring the account current for that due date.

Payment due date is the calendar date on which the monthly mortgage payment is contractually due.

A payoff statement shows the amount required to fully pay off a mortgage as of a specific date.

A principal curtailment is an extra payment applied directly to reduce the mortgage principal balance.

A servicing transfer occurs when the day-to-day management of a mortgage account moves from one servicer to another.

A suspense account is a holding account a servicer may use for funds received but not yet applied to the mortgage obligation.