If your mortgage lender is typical, it will sell your loan to a servicer -- and you'll wind up making mortgage payments to a stranger.

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The Federal Trade Commission says it's important to know who's handling your payments and to make sure that they're respecting your rights.

Timothy Muris, the agency's chairman, said consumers have no choice about who services their loans, because loans are routinely transferred to outside servicers and consumers cannot simply take their business elsewhere when mistreated. He said that makes it all the more important for servicers to comply with their legal obligations.

"Consumers should be treated fairly and honestly in the servicing of their loans," Muris said. "It can be extremely difficult for subprime borrowers to avoid an abusive servicer by refinancing or paying off their loans."

The FTC says an educated consumer is always the best defense against fraud and deception. So read your billing statements carefully and keep records of what you pay and when.

The government reached a settlement Wednesday with Fairbanks Capital, a big mortgage servicer that allegedly abused borrowers by forcing them to pay unjustified late fees and other improper costs.

The FTC and the Housing and Urban Development Department said the company "engaged in a laundry list of predatory loan servicing practices." In the settlement, the Salt Lake City-based company will set up a $40 million fund to compensate thousands of customers.

HUD called it a record civil settlement over violations of guidelines covering home loans and home-buying transactions. Government officials said Fairbanks Capital also violated rules on fair credit reporting and debt collection.

The FTC released a new brochure to help consumers understand their rights. Along with tips for consumers to keep track of their records, the brochure explains how to file disputes with loan servicers.

Brochure: Mortgage Servicing: Making Sure Your Payments Count (Adobe Reader Required)