Mortgage sold

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Shem002
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Joined: Wed Nov 07, 2018 11:49 am

Mortgage sold

Post by Shem002 »

Well my mortgage has been sold twice already this year and I was wondering how often/how many times yours has been sold? I dread it each time, new login info, additional 1098 forms, letters from new lender stating they will take a hazardous insurance policy out on the property because they don't have a policy on their records, etc.
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Meg77
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Re: Mortgage sold

Post by Meg77 »

That seems unusual. Mine have traditionally only been sold once shortly after origination.
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stoptothink
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Re: Mortgage sold

Post by stoptothink »

Mine was sold 3 times in 4yrs (before paying it off). The last company (Flagstar) was horrific, making multiple mistakes with principal payments and the payoff. So glad I never have to deal with them again.
squirm
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Re: Mortgage sold

Post by squirm »

Ours was sold twice, but I decided to pay it off.
260chrisb
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Re: Mortgage sold

Post by 260chrisb »

Mine had been sold three times in the first three years including twice before I ever made my first payment! Just goes to show; these lending institutions always seem to find buyers for solid mortgages. My FICO was about as high as it could have been and my interest rate is 3%. Kind of pisses me off so I'm trying to pay off my fifteen year as quickly as I can. It's probably going to turn into an eleven or twelve year mortgage.
MishkaWorries
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Re: Mortgage sold

Post by MishkaWorries »

Our first mortgage was sold right after we bought the house and before the first payment was due. We refinanced and the mortgage stayed with the refinance companies until we paid it off.
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Doctor Rhythm
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Re: Mortgage sold

Post by Doctor Rhythm »

Countrywide 1999 (refi 2003) —> BoA 2008 after former went out of business —> NationStar around 2011 until we paid it off. So 3 sales in one year seems like a lot.
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lthenderson
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Re: Mortgage sold

Post by lthenderson »

Ours has never been sold and is still with the mortgage department of the bank where we obtained it.
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sunny_socal
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Re: Mortgage sold

Post by sunny_socal »

Totally normal OP. Every single mortgage I've ever had has been sold at least once.
lthenderson wrote: Mon Jun 21, 2021 5:23 pm Ours has never been sold and is still with the mortgage department of the bank where we obtained it.
Are you sure? The 'servicing' may stay the same and you'd never know it had been sold.
alex_686
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Re: Mortgage sold

Post by alex_686 »

sunny_socal wrote: Mon Jun 21, 2021 7:08 pm Totally normal OP. Every single mortgage I've ever had has been sold at least once.
lthenderson wrote: Mon Jun 21, 2021 5:23 pm Ours has never been sold and is still with the mortgage department of the bank where we obtained it.
Are you sure? The 'servicing' may stay the same and you'd never know it had been sold.
Conversely, maybe OP mortgage was never sold, rather it is the servicing rights that have been sold.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
TheHiker
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Re: Mortgage sold

Post by TheHiker »

Sounds like a pain, but what can you do?
I guess I was lucky that I never had my mortgage sold. Or maybe I didn't know that it was (but then why do I care as nothing changed for me).
My credit card was sold once which was not a pleasant experience and I ended up closing it because of this. But you can't always do the same with a mortgage...
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lthenderson
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Re: Mortgage sold

Post by lthenderson »

sunny_socal wrote: Mon Jun 21, 2021 7:08 pm Totally normal OP. Every single mortgage I've ever had has been sold at least once.
lthenderson wrote: Mon Jun 21, 2021 5:23 pm Ours has never been sold and is still with the mortgage department of the bank where we obtained it.
Are you sure? The 'servicing' may stay the same and you'd never know it had been sold.
How does one know? The statements I get have always had the same name and address and in fact, I have had the mortgage auto paid out of my checking account at the bank since we signed up for the mortgage and never had to change it in all these years. I have never received notice that my loan was sold or being serviced by someone else. I would assume that if another company "serviced" the loan, I would be notified and the money I pay would need to be mailed to their accounts.
lazydavid
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Re: Mortgage sold

Post by lazydavid »

Our first mortgage was initially sold to BoA by the broker (which we totally expected), and then was sold again. Since then, all of our purchases/refinances have been with a local Credit Union which does not sell servicing by policy, and almost never sells the loans themselves.
setancre
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Re: Mortgage sold

Post by setancre »

Ours was just sold again also. It is irritating to deal with--I feel like there should be some de minimus transaction fee (or other cost) the banks should pay borrowers when they are buying/selling servicing rights. Even if it is just like $20 to acknowledge the time and inconvenience to the borrower. Creating new logins, re-sending insurance contracts, fixing the initial onboarding glitches. Many of the banks charge ticky-tack fees to the consumer for activities related to their mortgage account, not sure why it couldn't go the other way too.
DoubleComma
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Re: Mortgage sold

Post by DoubleComma »

Every mortgage I have had thus far has been sold to FannyMae within 30 days of closing.

The servicing was typically sold independently from the mortgage, this generally happened once or twice during the period I held the loan. However on my Primary Residence I did a Refi with Better in 2017 where the servicing was sold 5 times between April 2017 and Nov 2019 until I paid it off. My mountain house still has a mortgage, was refinanced in Sept 2020 with LenderFi, its still being serviced by LenderFi.

I don't think there is any rhyme or reason to how often servicing rights are sold.
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Shem002
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Re: Mortgage sold

Post by Shem002 »

setancre wrote: Tue Jun 22, 2021 12:08 pm Ours was just sold again also. It is irritating to deal with--I feel like there should be some de minimus transaction fee (or other cost) the banks should pay borrowers when they are buying/selling servicing rights. Even if it is just like $20 to acknowledge the time and inconvenience to the borrower. Creating new logins, re-sending insurance contracts, fixing the initial onboarding glitches. Many of the banks charge ticky-tack fees to the consumer for activities related to their mortgage account, not sure why it couldn't go the other way too.
I agree it is frustrating, we have not had much luck with "we will receive autopay and insurance information from your current servicer". I understand why loans are sold but there seems like their could be a better way. I would be interested in a "sub servicer" that stays the same and then they deal with the servicer in terms of transferring payments to them, etc.
Broken Man 1999
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Re: Mortgage sold

Post by Broken Man 1999 »

All three mortgages we had were kept at our credit union, never sold. The CU had told us they typically didn't sell the member's mortgages, and at least from our experience they didn't. Today, no idea if they still hold them. A DD refinanced a couple of years ago, original loan and refinance was at the CU. The loan was several years old. So, maybe the CU still keeps them.

Our insurance documents always listed the credit union as holding our mortgages.

OP, stay on top of your homeowners policy.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
alex_686
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Re: Mortgage sold

Post by alex_686 »

lthenderson wrote: Tue Jun 22, 2021 9:05 am
sunny_socal wrote: Mon Jun 21, 2021 7:08 pm Totally normal OP. Every single mortgage I've ever had has been sold at least once.
lthenderson wrote: Mon Jun 21, 2021 5:23 pm Ours has never been sold and is still with the mortgage department of the bank where we obtained it.
Are you sure? The 'servicing' may stay the same and you'd never know it had been sold.
How does one know? The statements I get have always had the same name and address and in fact, I have had the mortgage auto paid out of my checking account at the bank since we signed up for the mortgage and never had to change it in all these years. I have never received notice that my loan was sold or being serviced by someone else. I would assume that if another company "serviced" the loan, I would be notified and the money I pay would need to be mailed to their accounts.
So, the items that you mention are what the servicer does. So we can be confident that your servicer has not changed.

That the servicers hasn't told you that they sold the loans means nothing. They don't have to. In all likelihood the mortgage was sold to a big bank, who then bunded the loans to Freddie Mac or Fannie Mae, who bundled them together in a MBS, where slivers are trades daily.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
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lthenderson
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Re: Mortgage sold

Post by lthenderson »

alex_686 wrote: Wed Jun 23, 2021 4:32 pm
lthenderson wrote: Tue Jun 22, 2021 9:05 am
sunny_socal wrote: Mon Jun 21, 2021 7:08 pm Totally normal OP. Every single mortgage I've ever had has been sold at least once.
lthenderson wrote: Mon Jun 21, 2021 5:23 pm Ours has never been sold and is still with the mortgage department of the bank where we obtained it.
Are you sure? The 'servicing' may stay the same and you'd never know it had been sold.
How does one know? The statements I get have always had the same name and address and in fact, I have had the mortgage auto paid out of my checking account at the bank since we signed up for the mortgage and never had to change it in all these years. I have never received notice that my loan was sold or being serviced by someone else. I would assume that if another company "serviced" the loan, I would be notified and the money I pay would need to be mailed to their accounts.
So, the items that you mention are what the servicer does. So we can be confident that your servicer has not changed.

That the servicers hasn't told you that they sold the loans means nothing. They don't have to. In all likelihood the mortgage was sold to a big bank, who then bunded the loans to Freddie Mac or Fannie Mae, who bundled them together in a MBS, where slivers are trades daily.
So if everything works seamlessly with no notice, why all the complaining up above about the inconvenience? What am I missing?

P.S. I got my mortgage through a "big bank" which may be why they still have and service the loan.
Andyrunner
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Re: Mortgage sold

Post by Andyrunner »

Mine was sold 2-3 times within the first few years, first few times to unknown companies I have never heard of. Finally it was sold to SunTrust which it stayed till I paid it off.
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anon_investor
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Re: Mortgage sold

Post by anon_investor »

Broken Man 1999 wrote: Tue Jun 22, 2021 12:50 pm All three mortgages we had were kept at our credit union, never sold. The CU had told us they typically didn't sell the member's mortgages, and at least from our experience they didn't. Today, no idea if they still hold them. A DD refinanced a couple of years ago, original loan and refinance was at the CU. The loan was several years old. So, maybe the CU still keeps them.

Our insurance documents always listed the credit union as holding our mortgages.

OP, stay on top of your homeowners policy.

Broken Man 1999
The insurance will list the servicer not the holder of the mortgage. For example, Fannie Mae owns my mortgage but Wells Fargo is the servicer and is listed on my insurance.
Broken Man 1999
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Re: Mortgage sold

Post by Broken Man 1999 »

anon_investor wrote: Thu Jun 24, 2021 7:47 am
Broken Man 1999 wrote: Tue Jun 22, 2021 12:50 pm All three mortgages we had were kept at our credit union, never sold. The CU had told us they typically didn't sell the member's mortgages, and at least from our experience they didn't. Today, no idea if they still hold them. A DD refinanced a couple of years ago, original loan and refinance was at the CU. The loan was several years old. So, maybe the CU still keeps them.

Our insurance documents always listed the credit union as holding our mortgages.

OP, stay on top of your homeowners policy.

Broken Man 1999
The insurance will list the servicer not the holder of the mortgage. For example, Fannie Mae owns my mortgage but Wells Fargo is the servicer and is listed on my insurance.
Ah, so my CU was listed because they were the servicer and not because they held the mortgage. Well, makes sense, as the servicer usually takes care of the insurance if the loan is in escrow.

I can only imagine the stress for some homeowners having their mortgage sold, and/or their servicers changed so frequently. Having to set up automated payments again if used, etc..

I'm so glad we are past all that.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
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anon_investor
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Re: Mortgage sold

Post by anon_investor »

Broken Man 1999 wrote: Thu Jun 24, 2021 8:00 am
anon_investor wrote: Thu Jun 24, 2021 7:47 am
Broken Man 1999 wrote: Tue Jun 22, 2021 12:50 pm All three mortgages we had were kept at our credit union, never sold. The CU had told us they typically didn't sell the member's mortgages, and at least from our experience they didn't. Today, no idea if they still hold them. A DD refinanced a couple of years ago, original loan and refinance was at the CU. The loan was several years old. So, maybe the CU still keeps them.

Our insurance documents always listed the credit union as holding our mortgages.

OP, stay on top of your homeowners policy.

Broken Man 1999
The insurance will list the servicer not the holder of the mortgage. For example, Fannie Mae owns my mortgage but Wells Fargo is the servicer and is listed on my insurance.
Ah, so my CU was listed because they were the servicer and not because they held the mortgage. Well, makes sense, as the servicer usually takes care of the insurance if the loan is in escrow.

I can only imagine the stress for some homeowners having their mortgage sold, and/or their servicers changed so frequently. Having to set up automated payments again if used, etc..

I'm so glad we are past all that.

Broken Man 1999
Oh yeah! I did 2 refi's last year, the rates really fell that much in only a matter of months. For whatever reason, when my final refi was transfered to a new servicer my insurance never got updated properly, and my insurance had some random servicer that I never had listed. Luckily I checked and had that all straightened out, but that would have been bad if my insurance didn't get paid from escrow!

All except 1 or my 4 mortgages have been sold within a short period of time to Fannie Mae (the exception 1 that Wells Farg kept). The servicer sometimes changed when sold to Fannie Mae and sometimes did not. As much as people hate Wells Fargo, I am on my 3rd mortgage serviced by Wells Fargo and they have been good. Always issue the tax forms on time, pay my taxes/insurance from escrow on time and the correct amount. I had some service called The Money Source, who took FOREVER to refund escrow after a refi. When I did a refi of a Wells Fargo service mortgage they refunded my escrow very quickly.
alex_686
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Re: Mortgage sold

Post by alex_686 »

lthenderson wrote: Thu Jun 24, 2021 7:22 am So if everything works seamlessly with no notice, why all the complaining up above about the inconvenience? What am I missing?
Mostly semantics, but semantics can be important.

OP is saying that his loan has been sold and all things are woe. But technically speaking it was the servicing that was sold and that is making all things woe.
Former brokerage operations & mutual fund accountant. I hate risk, which is why I study and embrace it.
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Gray
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Re: Mortgage sold

Post by Gray »

Never. Navy Federal owns and services its jumbo mortgages.
MadHungarian
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Re: Mortgage sold

Post by MadHungarian »

I can't stand that sort of thing myself, so i used a lender (credit union) that doesn't sell the servicing.

As far as the actual loan being sold, as long as the servicing doesn't change, then i never see it and don't know about it and don't care.
(Provided of course i don't need to re-negotiate the loan terms for some reason -- then it does make a big difference whether the loan was sold or not)
snapvestor
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Re: Mortgage sold

Post by snapvestor »

lazydavid wrote: Tue Jun 22, 2021 11:48 am Since then, all of our purchases/refinances have been with a local Credit Union which does not sell servicing by policy, and almost never sells the loans themselves.
This is what we do as well and I can talk with a human in person whenever I want.
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