A person receiving monthly principal and interest payment is classified as which of the following?

A person receiving monthly principal and interest payments is classified as a lender or servicer because they are the entity that holds the mortgage and manages the loan account. This role involves collecting payments from the borrower, which consist of both principal and interest, over the life of the loan.

The lender originates the loan, while the servicer manages it, including processing payments, maintaining records, and handling customer service inquiries. In this case, when someone is receiving those monthly payments, it indicates they are either the original lender or a company tasked with servicing the loan on behalf of the lender.

The other options do not accurately describe someone receiving such payments. For instance, a broker primarily acts as an intermediary between borrowers and lenders but does not receive principal and interest from borrowers. Similarly, a mortgage banker is involved in originating, funding, and sometimes servicing loans, but they are typically the ones providing the funds, not the recipients of monthly payments. An escrow company handles the processing of funds and documents related to real estate transactions but is not involved in receiving monthly mortgage payments from borrowers.