The loan servicer is the company that you actually make your mortgage payment to each month. They are responsible for maintaining the escrow account (if applicable) and seeing that all tax and homeowners insurance payments are made to the proper place at the proper time.

They will also provide a yearly ‘escrow statement’ that breaks down exactly how much was withheld each month and what payments were made throughout the year. In addition, they will estimate the needed amounts for the coming year. This could result in a projected shortage in the account (due to increases in taxes or hazard policy increases) that may raise your monthly payment over the next year.