What Are the Differences Between a Mortgage Lender and a Mortgage Servicer?

There are significant differences between a mortgage lender and a mortgage servicer; however, a single company may simultaneously act as both a mortgage lender and mortgage servicer, performing both roles. A mortgage lender is a financial institution that lends money for a home purchase to a borrower.

On the other hand, a mortgage servicer is a company that handles the operational aspects of managing a mortgage. As such, a mortgage servicer that oversees management of your mortgage and its payments may not necessarily be the same company that loaned you the funds.

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A mortgage lender can also be a loan servicer, but most of the time a non-bank servicer cannot be a lender.