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1.2.2.5 Identify the Critical Parties

Every mortgage transaction brings together a variety of actors. Some are directly involved with the homeowner while others operate behind the scenes. Some appear on the stage at the beginning of the process. Others enter the scene when the homeowner makes payments or defaults. Section 1.3.2, infra, provides a detailed description of various parties to a mortgage transaction.

However, for purposes of first steps, it is important to identify the loan originator, the current loan holder and the current servicer. The originator is the financial institution that originally provided the loan to the borrower and is typically listed as the payee on the note. The current loan holder is the party that has the present right to receive payments on the note and initiate a foreclosure. Section 1.3.3.3.2, infra, discusses how to compel disclosure of the current loan holder, and § 10.2.6, infra, discusses the requirement that the borrower receive a transfer of loan ownership notice. The servicer is the intermediary between the current holder and the borrower. The holder typically delegates significant authority to the servicer to resolve delinquent loans and prosecute foreclosures. Section 3.2.3, infra, discusses the requirement that the borrower receive a transfer of servicing notice.