Finance
What is 'mortgage servicing' and how does it affect Delaware homeowners?
AThe process of applying for and originating a mortgage loan
BThe administration of a mortgage loan after origination — collecting payments, maintaining escrow accounts, handling delinquencies, and (when necessary) initiating foreclosure; servicers may change without the borrower's consent✓ Correct
CThe annual maintenance of the mortgage documents by the lender
DThe process of paying off a mortgage before maturity
Explanation
Mortgage servicing encompasses all post-origination loan administration: collecting payments, maintaining escrow accounts for taxes and insurance, applying payments, and handling delinquencies. The originating lender often sells the servicing rights — Delaware borrowers may find their servicer changes without affecting the loan terms. RESPA governs servicer obligations, including transfer notices and response to qualified written requests.
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