Applying for a mortgage loan usually involves many people, forms, fees and more. And all this can get a bit confusing.

The most important persons in a mortgage loan are the borrower, which is you, and the mortgage owner. It is pretty much the consumer and the provider, in a business sense. 

But who exactly is the mortgage owner? And how does it differ from other entities such as mortgage servicers and mortgage backers? 

Today we tell you more about the entity that owns your mortgage loan. 

Who Owns My Mortgage?

The person who owns your mortgage is known as the mortgage owner. The mortgage owner is also known as the mortgage holder or the mortgagee. 

The mortgage owner is the legal entity that holds ownership of your loan. They are the ones who ultimately get the principal and interest payments you make each month.

They are legally entitled to enforce the loan arrangement, which includes a promissory note and a security interest or deed of trust. 

If a borrower defaults on their mortgage payments, the mortgage owner is the only person with the right to collect the amount owed or foreclose on the property. So, basically, if someone isn’t able to pay their mortgage off, then the mortgage owner will end up owning the property. They are the only ones who can legally take ownership in this case.

The mortgage holder or owner is still different from the mortgage servicer and the mortgage backer. There has been confusion between the three entities, but with a little explanation, the difference is really that simple. 

What Is A Mortgage Servicer?

A mortgage servicer is an entity that processes and manages loan-related operations. The mortgage servicer is responsible for the loan’s day-to-day management.

The mortgage servicer may or may not be the same as the mortgage holder of the debt. Sometimes, your mortgage servicer may be a part of the same company that owns your mortgage.

A mortgage servicer’s duties include:

  • taking care of the collection and processing of your monthly payments
  • monitoring the balance of your account
  • managing your escrow account, if you have one, and
  • supervising the foreclosure process if you fall behind on your mortgage payments.

What Is A Mortgage Backer?

Mortgage backers are federal government agencies such as the Federal Housing Administration (FHA), the United States Department of Agriculture (USDA), or the Department of Veterans Affairs (VA). Additionally referred to as mortgage guarantors, these entities assure mortgage owners that they will be compensated if a borrower defaults on their loan.

Guarantors are not entitled to claim assets acquired by borrowers.

Now, assuming that you do not know who your mortgage owner is, and you want to know who it is, how will you find out? Well, here is one of the ways to find out who your mortgage owner is:

You can find out who owns your mortgage online, by calling, or by sending a written request to your servicer. The servicer is required to give you the name, address, and telephone number of the person who owns your loan, to the best of their knowledge.

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