Mortgage Servicing

Your monthly mortgage payments are handled by what is known as a mortgage servicer.  At New American Funding, we service 98% of our loans, so you'll make your monthly payments to us and we'll manage your escrow account for you.

Your escrow account is a special account held in your name to pay obligations such as property taxes and insurance premiums. The mortgage servicer uses the funds from your escrow account to insure that these expenses are paid in a timely fashion. This avoids the risk of having lapsed insurance coverage or delinquent taxes. And it gives you the peace of mind of knowing that you won’t have to make large lump sum payments during the course of the year.

At the time the escrow account is established, your mortgage servicer is required to provide you with a statement of estimated expenses and the expected total of those expenses for the next 12 months.

Each year thereafter, the mortgage servicer is required to provide a statement that outlines what portion of your mortgage payments were applied to principle, interest, taxes, insurance, and other escrow items. The annual statement also details any adjustments in payments to cover taxes, insurance and other escrow items.