Is it bad when the lender sells my mortgage to another company?
by Mortgage Rates on Wednesday, December 1st, 2010 | 3 Comments
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No, it’s not. It’s customary. Nothing changes except the mortgager name.
I don’t think it’s “bad” as in you did anything wrong. I think some mortgage companies are set up as “brokers” and you get your mortgage through them and somehow they get a profit to sell it to another company.
I have had this happen to friends and some have come out better (better benefits) and other’s have had nightmares with the new mortgage company and ended up refinancing through someone else. Just keep an eye on the changes that might take place.
Don’t worry, this happens all the time. It’s not a reflection on your as a mortgagee. This is one way than lenders make money and manage their portfolios.
What is important is that the terms of your original mortgage contract (when you closed) should not change. However, it is up to you to pay attention and make sure your payment goes to the right place at the right time.