Mortgage Servicing Transfers: What to Do When Your Loan Is Sold
Many homeowners open the mail one day and find a letter saying their mortgage is now serviced by a different company. It can look alarming, and it's also a common way for scammers to reach people. The change is routine, and your rights during it are specific. Servicing and ownership aren't the same The servicer is the company that collects your payments, manages your escrow account and answers your questions. Your loan can also be owned by an investor, or sold on the secondary market. Servicing rights can be sold or transferred separately from the loan itself, which is why you can get a new servicer without anything else about your loan changing. What stays the same The transfer should not change your interest rate, your loan balance, your monthly principal-and-interest payment or the length of your loan. Your terms are set by your note and mortgage documents, which move with the loan. The notices you should receive Federal rules generally require your current servi...