What does servicing a mortgage loan typically involve?

Servicing a mortgage loan primarily involves the ongoing management of the loan after it has been originated. This includes receiving and processing monthly installment payments from borrowers, maintaining accurate records of the loan, and managing escrow accounts for property taxes and insurance. The servicer plays a crucial role in ensuring that payments are applied correctly, communicating with borrowers regarding their account, and providing assistance if the borrower encounters difficulties in making payments.

In contrast, creating new mortgage products refers to the development of new loan options and does not fall under loan servicing. Enforcing property taxes is typically the responsibility of local governments and tax authorities, not mortgage servicers. Negotiating new loan terms may occur in certain circumstances, such as loan modifications, but it is not a standard aspect of servicing; rather, it involves a more specialized interaction that occurs outside regular servicing duties. Therefore, the primary focus of loan servicing is on the management of payments and communication with borrowers, which aligns with the correct answer.