There are continuous administrative duties for the MSRs which are regularly processed for the entire duration of a mortgage.
The right to collect mortgage payments on a monthly basis, setting aside taxes and insurance premiums in escrow, and forwarding the interest and principal portions to the mortgage lender are some of the common rights of the MSR.
And at the beginning of the servicing agreement itself, a specific fee is defined and entered into the contract which is in the form of compensation to the servicer.
As far as the borrower is concerned factors like the mortgage payment amount, interest rate, type of loan, and others remain the same, only the address to which payments are sent is changed.
The borrower should contact the servicer, instead of their original mortgage lender if they have any questions regarding their loan.
The servicer can change at any time, but the borrower receives a notice from their original lender at least 15 days before the change takes place, and the new servicer should also notify the borrower within 15 days of assuming rights.
Financial institutions are allowed to sell mortgages or transfer servicing rights to other institutions without consumer consent according to federal banking laws.