Overview

Loan servicing is the operational side of lending that begins after your loan is funded. Servicers handle the day-to-day mechanics: collecting monthly payments, managing escrow accounts for taxes and insurance, sending statements, and maintaining your payment history. Servicers also handle communications if you fall behind and implement loss-mitigation options such as repayment plans or loan modifications.

In my practice managing mortgage and consumer loan portfolios for over 15 years, I’ve seen that borrowers who know exactly who to contact avoid unnecessary delinquencies, misapplied payments, and surprise fees. This guide explains the key contacts inside a servicing company, what each team does, what documents to have ready, and how to escalate unresolved problems using federal and state resources.

Who owns the loan vs. who services it

A common source of confusion: the owner of your loan (the investor) is not always the same as the company that services your loan. Lenders often sell loans to investors or package them into securities; a separate company then collects payments and manages accounts. That means:

  • The investor (e.g., Fannie Mae, Freddie Mac, a bank, or a private investor) owns the debt and sets some loan terms.
  • The servicer collects payments and handles account administration.

If your loan is sold or transferred, federal rules require notice of the transfer and a transition period where you can still send payments to the old servicer for a short time (see RESPA and CFPB servicing rules) (Consumer Financial Protection Bureau).

Typical servicing departments and who to contact

Servicing companies are organized by function. Knowing which team to call saves time:

  • Customer Service / Account Services: General account questions, statements, payoff amounts, change of address, basic payment questions. This is the first stop for most borrowers.
  • Payments Department: Reporting a missed payment, changing payment method, resolving auto-pay issues, and confirming receipt of funds.
  • Escrow or Tax & Insurance Department: Questions about escrow balances, shortages, property tax payments, or homeowner’s insurance disbursements. (See our detailed article on escrow shortages: Understanding Escrow Shortages and Your Mortgage Payment.)
  • Loss Mitigation / Collections: For borrowers who are late or facing hardship. This group handles repayment plans, forbearance, trial modifications, and foreclosure prevention options. If you’re pursuing a trial modification, see Trial Modifications for Mortgages: What to Expect During the Trial Period.
  • Foreclosure or REO (Real Estate Owned) Department: If your account becomes severely delinquent and moves toward foreclosure, this department coordinates legal actions and, if property is repossessed, the disposition process.
  • Technical Support: Problems accessing the online portal, mobile app issues, or e-statement delivery problems.
  • Documentation / Payoff Department: Requests for payoff statements, loan histories, notices of payoff, and reconveyance documents after payoff.

What to have before you call

Being prepared shortens calls and increases the chance of a successful outcome. Gather:

  • Loan account number and property address (if applicable).
  • Recent statement and proof of last payment (bank statement, cancelled check, or confirmation email).
  • Government ID and contact information to verify identity.
  • Any relevant notices you received (e.g., transfer-of-servicing notices, delinquency letters, escrow analyses).
  • A short timeline or summary of the issue and desired resolution.

Always record the date/time of the call, the representative’s name and ID, and the confirmation number. Follow up with a brief email summarizing the conversation and keep it with your records.

Common servicing problems and how servicers typically resolve them

  • Misapplied or lost payments: Provide proof of payment and request a written correction and credit to your account. If a payment was sent to the wrong company after a loan transfer, federal rules require a 60-day transition window for remittance without penalty in some cases (refer to CFPB guidance).

  • Escrow shortages and increases: Ask for an escrow analysis. Servicers can spread shortage payments over 12 months or require a lump-sum payment depending on company policy and regulatory rules. Review your escrow disbursements to confirm billing accuracy.

  • Notices after a loan sale/transfer: If you get conflicting payoff information after a transfer, request a written payoff from the current servicer and confirm the effective transfer date.

  • Trial modification confusion: Keep copies of all trial modification agreements and proof of timely trial payments. Ask for written confirmation that trial payments will convert to a permanent modification when conditions are satisfied.

  • Technical/portal errors: Ask for immediate email confirmation of any transaction submitted online and request manual processing if the site is down.

How and when to escalate

If the frontline representative can’t resolve your issue:

  1. Ask to speak with a supervisor and request escalation tracking ID.
  2. Use written communications (secure messaging through the servicer’s portal or certified mail) for complex disputes — written records are persuasive evidence in complaints.
  3. File a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov/complaint if the servicer doesn’t respond timely or your issue involves potential regulatory violations. State banking or financial regulators can also help with state-chartered institutions (search your state’s banking regulator).
  4. For mortgages, reference federal protections under RESPA and TILA as implemented by the CFPB; these outline servicing transfer notices, error-resolution timelines, and billing dispute procedures.

Practical scripts and templates

Use a short, factual script when calling:

“Hello, my name is [Your Name]. My account number is [######]. I’m calling about [misapplied payment / escrow shortage / payoff request]. On [date], I [sent a payment / received a notice], and the account shows [status]. I can provide proof of payment. Please investigate and tell me the steps you will take and the expected timeline.”

Follow up in writing: keep the message short, include dates, amounts, and copies of proof. Ask for a response within 10 business days and a reference number for the inquiry.

Documentation: why it matters

Write everything down. If a problem escalates to a complaint with the CFPB, state regulator, or a lawyer, organized records — dates, names, confirmation numbers, screenshots, certified mail receipts — materially improve your position. Federal rule timelines may begin after a servicer receives an error notice in writing.

Legal protections and timeframes (high level)

Mortgage servicers are subject to federal mortgage servicing rules derived from the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA), implemented by the CFPB. These rules cover transfer-of-servicing notices, error-resolution procedures, and initial restrictions on foreclosure after certain notices. For authoritative guidance, see the Consumer Financial Protection Bureau (CFPB) resources on mortgage servicing (consumerfinance.gov).

This article provides general information; specifics can vary by loan type (mortgage, student loan, auto loan) and investor. Student loans, for example, have different servicers and borrower protections depending on whether loans are federal (ED) or private.

Real-world examples (anonymized)

  • Case 1: A borrower reported a payment missing after a loan transfer. We obtained a bank confirmation showing the ACH debit and a copy of the transfer letter. The servicer traced the funds, credited the account, and waived the late fee because the payment arrived during the transition window.

  • Case 2: A homeowner entered a trial modification but did not receive written confirmation that trial payments would satisfy mortgage arrears. We advised the borrower to stop trial payments only after receiving written acceptance; instead, they made payments on schedule and the servicer converted the trial to a permanent modification as promised.

These examples show the value of documentation and asking for written confirmations before changing payment behavior.

Practical tips to reduce servicing problems

  • Set up autopay with a linked account that has consistent funding, and keep a backup payment method available.
  • Enroll in e-statements and check them monthly to catch errors early.
  • When you sell or refinance, request a final payoff statement and confirm the release of lien after payoff.
  • Keep an emergency fund of 2–3 months of mortgage payments to avoid entering loss mitigation.

When to get professional help

If communications stall, you receive contradictory payoff figures, or your foreclosure timeline is moving quickly, consult a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD) or a qualified consumer-law attorney. HUD-approved counselors can be found at hud.gov.

Where to find your servicer

Check your original loan documents, monthly statement, online banking portal, or the mortgage note. If you can’t find the servicer, contact the original lender or review credit-report entries that sometimes reference servicing companies.

Next steps checklist for borrowers

  • Gather account number, recent statements, and proof of payments.
  • Call customer service; record the call details and confirmation numbers.
  • If unresolved, escalate to a supervisor and follow up in writing.
  • Use federal and state complaint channels when necessary (CFPB, state regulator).
  • Keep all records until the account is fully resolved and the loan is paid off.

Resources and authoritative references

  • Consumer Financial Protection Bureau (CFPB): guides and complaint portal (consumerfinance.gov) — includes mortgage servicing rules and error-resolution procedures.
  • U.S. Department of Housing and Urban Development (HUD): housing counseling resources (hud.gov).

Internal reading

For related topics on mortgage servicing issues, see our articles on escrow management and trial modifications:

Professional disclaimer

This article is educational and does not constitute personalized financial, tax, or legal advice. For advice tailored to your situation, consult your loan servicer, a HUD-approved housing counselor, or a licensed attorney.

If you’d like, I can convert the practical scripts into printable templates or provide a short checklist you can print and bring to a servicer call.