Finance
What is 'mortgage servicing rights' (MSR) in the Delaware mortgage market?
AThe right of a borrower to select their mortgage servicer
BThe contractual right and obligation to service a mortgage loan (collect payments, manage escrow, handle defaults) in exchange for a servicing fee✓ Correct
CThe right of lenders to offer servicing exclusively to their own loans
DA requirement that mortgage servicers be licensed in Delaware
Explanation
Mortgage Servicing Rights (MSRs) are the contractual rights to service a mortgage loan — collecting payments, managing escrow, and handling borrower inquiries — for a fee (typically a percentage of the outstanding balance). MSRs are bought and sold separately from the underlying loans.
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