What Is the Responsibility of a Mortgage Lender?
The Federal Trade Commission advises homebuyers that lenders and mortgage holders have certain responsibilities to their customers concerning their mortgages. These responsibilities begin at the inception of the purchase process and continue throughout the duration of the loan.
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Escrow Accounts and Payments
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Most mortgages contain an escrow account that the borrower pays into on a monthly basis. This account is utilized to pay annual property tax bills and homeowner's insurance premiums. The mortgage holder is responsible for keeping the consumer informed about the escrow account balance at all times and for showing proof of payment to property tax officials and homeowner's insurance companies.
Accounting for Payments
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The mortgage holder is responsible for posting payments to customer's accounts on the same day that the payment is received. Should the buyer inform the mortgage holder of an error, the mortgage holder must investigate the discrepancy within 30 days.
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Considerations
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Loan servicers are subject to change. A lender can sell a mortgage to another company but cannot change the original terms of the loan. When this occurs, it is the duty of the current mortgage holder to provide written notice to the borrower informing them of the change 15 days before the transfer.
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References
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