Mortgage Servicing

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

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

A confirmed successor in interest is a new property owner whose identity and ownership interest have been verified by the mortgage servicer.

An escrow advance is money the servicer pays to cover taxes, insurance, or related escrowed charges before enough borrower funds are available in the account.

An escrow shortage is the amount by which the account falls below its required target balance during escrow analysis.

An escrow surplus is the amount by which the account exceeds its target balance when the servicer performs escrow analysis.

A joint-payee insurance check names both the homeowner and mortgage company, so all required payees must participate before claim funds can be negotiated.

Party that currently owns a mortgage loan while a separate servicer may administer the borrower account.

An insurance loss draft is a claim-payment check or draft that may require both the homeowner and mortgage servicer to endorse it before repair funds are released.

A loss draft department is the mortgage-servicing unit that handles jointly payable property-insurance checks and releases repair funds.

Insurance loss proceeds are claim funds paid after covered property damage and may be controlled by the mortgage servicer while structural repairs are completed.

A repair draw is a staged release of insurance claim funds from a servicer-controlled account as property restoration progresses.

An insurance repair escrow holds unreleased property-claim proceeds while a mortgage servicer monitors repairs and authorizes staged disbursements.

An insured-loss repair inspection documents progress or completion of property repairs before a mortgage servicer releases additional claim funds.

A successor in interest is a person who receives an ownership interest in a mortgaged home through certain family, death, divorce, or trust transfers.

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

Autopay reauthorization creates or confirms permission for recurring mortgage drafts after servicing or payment-system changes.

Mortgage statement amount needed for the current billing cycle before past-due amounts or extra charges are layered in.

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

The escrow balance is the amount currently held for future property taxes, insurance premiums, and other escrowed charges.

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

Mortgage statement label for assessed account charges that have not yet been paid or resolved.

A goodbye letter tells the borrower when the current servicer will stop handling payments and identifies the incoming servicer.

Loan boarding loads mortgage terms, balances, payment history, and escrow data into a servicer's account system after closing or transfer.

The low-point balance is the smallest monthly balance in the servicer's projected escrow-account cycle.

The monthly escrow payment funds projected taxes, insurance premiums, and other escrowed property charges alongside the mortgage payment.

A new loan number is the account identifier an incoming servicer may assign for payments, portal access, and support.

A new servicer takes over payment processing, statements, escrow administration, and borrower support after a servicing transfer.

Mortgage statement view showing how a payment or amount due is divided among principal, interest, escrow, fees, and other buckets.

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

A prior servicer handled the mortgage account before servicing responsibility transferred to another company.

A projected escrow balance forecasts the account after expected monthly deposits and scheduled tax or insurance payments.

A payment remittance address is the destination designated for mortgage payments, which may change after a servicing transfer.

Amount of received mortgage funds currently held in suspense instead of applied as a normal payment.

A target escrow balance is the planned amount used to test whether projected account funds remain sufficient throughout the escrow cycle.

Mortgage statement amount that may combine the current payment, past-due amounts, fees, and other account charges.

The effective transfer date marks when the prior servicer stops and the new servicer begins handling the mortgage account.

Transfer payment instructions tell the borrower when and how to redirect mortgage payments to a new servicer.

A welcome letter confirms the new mortgage servicer, transfer date, contact details, and payment instructions after a servicing transfer.

An annual escrow statement shows the account activity, projected escrow needs, and any shortage or surplus for the coming year.

Autopay is a setup that lets the servicer or payment system pull the mortgage payment automatically on a scheduled date.

A coupon book is a set of mortgage payment stubs or coupons used for mailing paper payments to the servicer.

An escrow disbursement is a payment the servicer makes from the escrow account for taxes, insurance, or other approved charges.

An escrow ledger is the running record of escrow deposits, disbursements, and balance changes in the mortgage account.

An escrow refund is money the servicer returns to the borrower when the escrow account has more than it needs.

A late notice is a borrower-facing reminder that a mortgage payment is past due and may now trigger fees or escalation.

Payment allocation is the way a servicer splits a mortgage payment among principal, interest, escrow, fees, or other allowed buckets.

A payment coupon is the detachable or printed slip that shows the mortgage payment details used when sending a paper payment.

Payment history is the record of mortgage payments the servicer shows as received, posted, reversed, or returned.

A payment reversal is the undoing of a mortgage payment that had already been posted to the account.

A payment posting date is the date the servicer applies a received mortgage payment to the loan account.

A returned payment is a mortgage payment that the servicer or payment network could not keep and must send back or reverse.

A stop payment is an instruction that tells a bank not to honor a specific mortgage payment item.

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

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

Notice telling a borrower that mortgage servicing is moving to a different company and where future payments should go.

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.

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 application is the servicer's process for posting received mortgage funds to the borrower's account or holding them when they cannot yet be applied normally.

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

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