If you’ve ever gone through the process of getting a mortgage loan, you know that it can be long and laborious, with a lot of back and forth with the lender. Supplying documents, answering questions, and preparing for the closing day. And chances are, if the lender has done their job correctly, you have developed a trusting relationship with your loan officer and the support staff. This can make it a shock when you find out, sometimes before the first payment has even been made, that your loan has been sold to another loan servicing company.
Selling mortgage loans is not a rare occurrence, in fact, lenders will sell loans more often than keep them. The simple explanation why lenders sell loans is to free up capital so they can close more loans for consumers. It also helps keep their rates as low as possible. Here’s what you need to know if your loan gets sold:
- The new owner will be taking over the servicing rights, which include the collecting and processing of payments and making disbursements from your escrow account to taxing authorities and property insurers.
- You will get a notification of the sale at least 15 days prior to the official transfer, and within 30 days the new owner is required to send you their name, address, and contact number. You should note the date the previous owner will stop accepting payments, and when the new one will take over. You may need to update the ACH withdrawal to the new owner.
- The terms of the loan, including the interest rate, monthly payment, and remaining balance, should not change.
- If you have any issues related to the sale of your loan, you can file a complaint with the Consumer Financial Protection Bureau.
Even though selling mortgage loans is a common occurrence, at NASB we want to make sure all our borrowers are taken care of, and any questions or concerns are addressed throughout the mortgage loan process. If you have questions about the sale of loans, give NASB’s mortgage servicing department a call at 800-677-6272.