Mortgage Servicing

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

New or confirmed automatic-payment authorization after mortgage servicing or payment setup 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.

Amount currently held in the mortgage escrow account for taxes, insurance, and related bills.

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.

Servicing-transfer notice from the prior servicer telling the borrower account handling is moving.

Servicer setup process that loads a mortgage account into the new servicing system after closing or transfer.

Lowest projected escrow account balance during an escrow-analysis cycle.

Part of the monthly mortgage payment collected for escrowed taxes, insurance, and related housing charges.

Account identifier a new mortgage servicer may assign after a servicing transfer or system change.

Mortgage servicer that takes over account handling 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.

Mortgage servicer that handled the loan account before a servicing transfer.

Forecasted escrow account balance after expected monthly collections and tax or insurance disbursements.

Address or payment destination a mortgage servicer provides for sending mortgage payments.

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

Escrow balance the servicer expects the account to need at a specific point in the escrow projection.

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

Date when mortgage servicing responsibility moves from the prior servicer to the new servicer.

Payment directions a borrower should follow when mortgage servicing moves to a new servicer.

Servicing-transfer notice from the new servicer confirming it will handle the mortgage account.

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.

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 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.

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.