What Is a Mortgage Correspondent?

A mortgage correspondent is an individual or a business that handles the servicing of mortgage loans. Mortgage lenders will often contract with mortgage correspondents in order to handle their loans for them.

Administrative Duties

The mortgage correspondent will handle all of the regular administrative duties associated with servicing a mortgage. They will collect the mortgage payments, update customer accounts, handle customer service and mail statements. This individual is not the actual owner of the mortgage debt, but they simply service it for another mortgage lender. 


In return for these services, the mortgage correspondent will collect a certain amount of money from the mortgage payment. Their payment will be a percentage of the total value of the mortgage payment. In most cases, the payment will be less than half of one percent of each mortgage payment. The mortgage correspondent makes their money by servicing a large number of mortgages on a regular basis. 


The mortgage correspondent will also often handle the escrow component of the mortgage. Many mortgages have an escrow feature that charges the customer more money than just the principal and interest on each payment. The mortgage correspondent allocates this money to the right account and then pays the real estate taxes and insurance premium with the money.

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