You comparison shopped, choosing your mortgage lender carefully. Then, shortly after closing, you receive a letter from a new company introducing themselves as your servicing provider. What does this change really mean? Having your loan suddenly sold to a new lender may feel unsettling, particularly to first-time homebuyers.

Did you do something wrong? Is your lender allowed to do this? Will your carefully budgeted payment amount suddenly change? Here is what you need to know about your mortgage being sold to another company. This can happen a couple different ways, depending on who you chose to work with on your mortgage.

Mortgage originators are entities that work with borrowers to set up and conduct the mortgage transaction. Mortgage servicers handle the administrative duties of the mortgage such as collecting monthly payments or managing escrow accounts. Many mortgage originators do not service loans and as a result sell your loan shortly after it funds to a mortgage servicer.

However, some companies, such as PennyMac, both originate AND service mortgages so your loan remains with your originator after it funds and you retain the relationship with your lender often for the life of your loan.

Mortgage servicers earn fees for servicing your account and from time to time mortgage servicers may decide to sell the rights to Hot Club Dance Company your mortgage to another company.

Your consent is not required for the sale of your mortgage and your loan may be sold multiple times. The terms of your loan will remain the same.

If you do not have an adjustable loan, your payments will only change if factors outside the scope of your loan e. These types of changes, however, can take place regardless of whether or not your loan is sold to another company. Where this process can get confusing is that neither the company that originated your loan, nor the servicer, may actually own your loan.

Today, the majority of home loans are guaranteed or issued by Fannie MaeFreddie Mac or the FHAgovernment-chartered companies that purchase loans from lenders to free up money so they can then lend to other mortgage borrowers. As a mortgagor, you do have certain rights. Similarly, the lender, or mortgagee, has legal and fiduciary responsibilities to ensure you are treated fairly.

Some of those rights are as follows:. It is your responsibility to read the statement from your new mortgage servicer very carefully to make sure that all of the information is accurate. Overall, the sale of your loan should not cause you any problems, but there are three common My Mortgage Company Transferred My Loan to watch out for:. If your loan is sold, be proactive with questions and organized with your new payment information.

Paying attention to this quick and easy process will lead to a stress-free transition for you and your new mortgage servicer. Previous Page of Next. Why Use PennyMac? Get Started. Why Are Mortgages Sold? Who Actually Owns My Mortgage? What Are My Rights and Responsibilities? Some of those rights are as follows: Your current lender must provide you with a loan ownership transfer notice when your mortgage is sold.

The new mortgage servicer must notify you within 30 days with their name, address, telephone number, date of transfer and whether the transfer of ownership will be a public record. Overall, the sale of your loan should not cause you any problems, but there are three common My Mortgage Company Transferred My Loan to watch out for: Confusion: In order to avoid late payments, make sure that you carefully read all correspondence from you new servicer and take note of when you will need to begin making your payments to them.

Different Features: When your lender changes, there is the potential for the loss of features like online account access or paperless statements that every provider may not offer. Bad Timing: You may not know if and when your loan will be sold. If you are in Seminole Mud Company process of a loan modification or refinance when your loan is sold, you should not have to start the process all over again with your new mortgage servicer.

However, you should keep accurate records of what you have sent and received to ensure there are no issues with your loan modification that Locus Company from the transfer to your new servicer.

Why Was My Mortgage Sold to Another Company?

Mar 17, 2014 · It should be a separate letter and not mailed with your payment. The mortgage servicer must respond to you within 60 business days of receipt. But I just received a letter from another company that the servicing of my loan has been transferred. As mentioned earlier, your mortgage can be held by one company and serviced by another.Author: Brooke Mulder…

What to Do When Your Mortgage Is Sold - The Balance

May 16, 2019 · What to Do When Your Mortgage Is Sold. ... If a lending company serviced every loan it funded, it would have to have many billions of dollars on hand to ensure it had the cash available to provide those loans. Most banks and institutions would quickly be strapped for cash if they serviced every single loan. Instead, they bundle together a bunch ...…

Explaining the Loan Process: Service Transfer PennyMac

This includes a Mortgage Servicing Disclosure Statement, which explains whether the lender intends to service the loan or transfer servicing to another company. Notice of Transfer of Loan Servicing. When the servicing of your loan is being transferred, you should receive two notices in the mail:Author: Kristin Demshki…

What to Expect If Your Mortgage Is Sold to Another Lender?

When your loan is sold or transferred to another lender or servicer, you’re still on the hook for the mortgage but how you make your payments may be affected. If you’ve received a notice that your loan has been sold, knowing what to expect going forward can make the change less stressful. ... My new mortgage company has increased my ...…

Why Was My Mortgage Sold to Another Company? PennyMac

If you do not have an adjustable loan, your payments will only change if factors outside the scope of your loan (e.g. mortgage insurance or property taxes) also change. These types of changes, however, can take place regardless of whether or not your loan is sold to another company. Who Actually Owns My …Author: Kristin Demshki…