Some times people confuse “servicer” and the “bank”
Citibank might be servicing your mortgage which could be held by Fannie Mae. In that hypothetical case, if you default on the loan, the loss largely goes to Fannie Mae. If you are not aware of it, you may think that Citibank is somehow not marking to the market …
It can even be more complicated. Fannie Mae might have packaged your loan into an MBS that the bond fund in your 401K might be holding. In that case, your bond fund needs to “mark to market” – not Citibank.
