Who Owns My Home Loan?

When you close on your home and mortgage, you likely won’t be paying the company that closed your loan for long. So, who owns my home loan? While this might be surprising, it’s quite normal for your mortgage to be bought and sold throughout its life. Let’s dive into why this happens and what it means for you as a homeowner.

Why is My Mortgage Sold?

Mortgages are typically sold for several reasons:

1. Liquidity: Selling mortgages allows lenders to replenish their funds and continue offering loans to new borrowers.
2. Risk Management: Lenders can manage and diversify their risk by selling mortgages.
3. Profit: Lenders can earn a profit by selling mortgages to investors.

Does It Affect Me?

When your mortgage is sold, the primary change is where you send your payments. The terms of your loan, such as the interest rate, monthly payment amount, and the duration of the loan, remain unchanged. You will receive a notice by mail with details about your new mortgage servicer, including where to send your payments.

Common Concerns and Misconceptions

Credit Risk: The sale of your mortgage does not reflect on your credit risk. It is a common practice in the mortgage industry and does not indicate any problem with your loan.

Customer Service: While you can’t choose your mortgage servicer, you can file a complaint if they are doing a poor job. Regulatory bodies like the Consumer Financial Protection Bureau (CFPB) can help address issues with mortgage servicers.

What Should I Do When My Mortgage is Sold?

1. Read All Notices: Pay close attention to any notices you receive about the transfer. These will include important information about where and when to send your payments.
2. Update Payment Information: Make sure to update any automatic payment settings with the new servicer’s information.
3. Keep Records: Keep copies of all notices and documents related to the transfer for your records.

All in All

Understanding that it’s normal for your mortgage to be sold can help alleviate concerns. The main thing to remember is that “who owns my home loan” does not impact your loan terms. Always stay informed by reading all communications from your lender and new servicer.

If you’re preparing to purchase a home or have questions about your mortgage, I’m here to help. Let’s chat about how we can make the mortgage process smooth and stress-free for you.