> A mortgage has a quirky little subcomponent called a Mortgage Servicing Right (MSR). Every month, it needs to collect money from the borrower and send that money… somewhere. This implies, minimally, a mailbox where you can send checks, someone to open the mail, and a phone number with a CS representative who can answer questions like “What is my current balance?” and “Did you get the last check I sent you?”
Like, seriously? Sending bits of paper through the post to make payment? Having to call someone up instead of logging in to your mortgage account online?
There's the other part of the servicing bit they are leaving out.
- Giving a Payoff amount for whatever reason
- Reporting to agencies
- Trying to work with the client when payments are missed, ideally ethically.
- (Before COVID this was true, I know it was at least temporarily suspended, dont think still suspended but might be) If above fails, remitting payment to the owner of the loan during that period between 'first missed payment' and 'able to apply for and receive relief from Fannie/Freddie'
Those things cost, and depending on your originator, may or may not be baked into the price as to how well it works.
Like, seriously? Sending bits of paper through the post to make payment? Having to call someone up instead of logging in to your mortgage account online?