Introduction to Mortgage Servicing Examination Training eBook

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Mortgage Servicer

Mortgage Servicing Rights (MSRs)

Lenders may retain or sell MSRs into the market

Master servicer may service loan, or contract out to a sub-servicer

MSR Owner must advance funds: • To investors, in case of borrower default • To insurers and tax assessors, if escrow account underfunded Moderate to High Risk

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Mortgage Servicer

Question: What are some financial risks Mortgage Servicers have?