In relation to mortgage transactions, what does the 'servicing' process usually cover?

The servicing process in mortgage transactions primarily encompasses managing loan payments. This aspect involves a variety of tasks that ensure the ongoing administration of a mortgage loan after it has been originated. Key responsibilities include collecting monthly payments from borrowers, managing escrow accounts for property taxes and insurance, providing customers with statements, and addressing any customer service inquiries related to the loan. The effective management of these elements is crucial for maintaining the financial health of the loan and ensuring compliance with relevant regulations.

Other choices, while important steps in the overall mortgage process, fall outside the specific scope of servicing. Evaluating loan applications is a part of the initial underwriting process; negotiating loan terms occurs during the establishment of the loan; and conducting property appraisals is typically handled before the loan is finalized, serving to determine the value of the property in connection with the loan. Therefore, these activities are distinct from the ongoing tasks performed during the servicing phase.