Which of the following is NOT a part of mortgage servicing?

• A. Payment collection
• B. Customer service
• C. Loan underwriting
• D. Managing escrow accounts

Answer: (C)

Loan underwriting is the process that occurs before a mortgage is granted, wherein the lender evaluates the borrower's creditworthiness and decides whether to approve the loan. This evaluation includes assessing the borrower's financial situation, credit history, and the property being financed. As such, it is not part of mortgage servicing, which refers to the management of an existing loan after it has been originated.

In contrast, mortgage servicing includes various ongoing functions such as payment collection, where lenders collect monthly payments from borrowers; customer service, which addresses borrower inquiries and concerns; and managing escrow accounts, where funds for property taxes and insurance are held to ensure these obligations are met. Together, these activities ensure that the mortgage is maintained properly after the initial loan approval and disbursement, emphasizing the distinction between the underwriting phase and the servicing phase of a mortgage.