What to Do If Your Mortgage Loan Gets Sold

Updated on September 17, 2019
Nate Robbins profile image

Nate is a Mortgage Loan Originator for a local bank with a degree in Finance, helping individuals make that big ticket purchase.NMLS#1875051

Mortgage Servicer
Mortgage Servicer

Mortgage Servicing

The mortgage process is a long daunting process that can be very intimidating if you haven’t done your due diligence prior to starting the process. Your loan servicer is your main point of contact through the term of your loan, so it’s important that you check how the servicing of the loan will be handled prior to taking your loan out. Be sure that they have your best interest at heart, that they have good customer service and if possible, that they will service your loan throughout the term of the loan.


The Secondary Market

First thing first, your loan itself was most likely sold the day after you closed your loan (unless you have an 810 credit score and bought a $1,000,000 home). Most banks sell the loan itself on the secondary market (Freddie Mac/Fannie Mae) so that they can free up their money and loan to more people. Think of it this way, if you have $10 and you loan it out you can’t make any other loans until you get your $10 back. But, if someone offered to give you your $10 back for a fee, but allowed you to make money for collecting the payments on that $10 and servicing that borrower you could make money and loan your $10 again to someone else. With that being said, it’s not the loan itself being sold that affects who you make your payments too, it’s when the servicing is sold that changes things for you the borrower.

Freddie Mac
Freddie Mac

Changing Loan Servicers

It’s important to note that there are a lot of scammers trying to get you to give them free money, so it is important that you know for sure who your new servicer is before you make any payments.

When your servicer changes you legally have to be notified far ahead of time. You can verify who your new servicer is by contacting MERS who’s number you can find through Google. MERS is a company that tracks loan servicers for borrowers for this specific reason. They will be able to tell you who owns your loan’s servicing rights.

Again, DON’T MAKE ANY PAYMENTS UNTIL YOU HAVE VERIFIED YOUR NEW SERVICER. Once your servicer has changed, it is federal law that the new servicer must give the borrower a 60 grace period before they can charge any late fees. So, take your time and make sure everything is right before you make a payment.

It is also worth mentioning that once servicing of your loan has officially changed, the old servicer no longer has any role with your loan. Your old servicer is officially out of the picture.


Mortgage Servicing FAQ’s

Will my interest rate change?

No, your original loan terms cannot be changed by any servicer.

I don‘t like my new servicer what can I do?

Unfortunately, the only way to get a new servicer is refinance your loan through the servicer you want. (Just be sure they aren’t going to sell servicing)

Do I have to pay a few for transferring servicers?

If servicing rights of your loan were sold, there is no cost to you as the borrower.

Was this article helpful?

See results

How was your experience through the loan servicing transfer?

See results

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

Questions & Answers

    © 2019 Nate Robbins


      0 of 8192 characters used
      Post Comment

      No comments yet.


      This website uses cookies

      As a user in the EEA, your approval is needed on a few things. To provide a better website experience, toughnickel.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

      For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://maven.io/company/pages/privacy

      Show Details
      HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
      LoginThis is necessary to sign in to the HubPages Service.
      Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
      AkismetThis is used to detect comment spam. (Privacy Policy)
      HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
      HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
      Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
      CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
      Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
      Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
      Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
      Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
      Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
      Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
      VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
      PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
      Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
      MavenThis supports the Maven widget and search functionality. (Privacy Policy)
      Google AdSenseThis is an ad network. (Privacy Policy)
      Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
      Index ExchangeThis is an ad network. (Privacy Policy)
      SovrnThis is an ad network. (Privacy Policy)
      Facebook AdsThis is an ad network. (Privacy Policy)
      Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
      AppNexusThis is an ad network. (Privacy Policy)
      OpenxThis is an ad network. (Privacy Policy)
      Rubicon ProjectThis is an ad network. (Privacy Policy)
      TripleLiftThis is an ad network. (Privacy Policy)
      Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
      Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
      Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
      Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
      ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
      Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
      ClickscoThis is a data management platform studying reader behavior (Privacy Policy)