FinanceIntermediateAlaska Exam

A 'mortgage servicer' in Alaska performs which of the following functions?

AOriginates new mortgage loans
BCollects monthly payments, manages escrow accounts, handles delinquencies, and remits funds to the loan ownerCorrect
CProvides homebuyer counseling
DIssues title insurance policies, though the precise application can differ somewhat from one county to the next

Why Collects monthly payments, manages escrow accounts, handles delinquencies, and remits funds to the loan owner Is Correct

Answer B: Collects monthly payments, manages escrow accounts, handles delinquencies, and remits funds to the loan owner

A mortgage servicer handles the day-to-day administration of a mortgage loan — collecting payments, maintaining escrow accounts for taxes and insurance, handling delinquencies and foreclosures, and remitting principal and interest to the loan investor. The servicer may be the original lender or a separate company.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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