Who Owns My Mortgage? Tracing The Sale Trail

If you want to find out whether your mortgage has been sold, there are several steps you can take. Firstly, check your monthly mortgage statement, as this usually includes information about your loan servicer and may provide details about the current owner of your mortgage. You can also contact your servicer directly, as they are obligated to provide you with the name, address, and telephone number of the owner of your loan. It's worth noting that the company you send your mortgage payments to may not be the loan owner, as loans are frequently sold in the mortgage industry. If your loan has been sold, the new owner is required by law to notify you in writing within 30 days of the transfer, and you can expect to receive notices from both your current and new servicer.

What to do if you receive a notice

If you receive a notice that your mortgage has been sold, don't panic. While it can be alarming to find out that your mortgage has changed hands, it's important to remember that the terms of your loan, including your interest rate, monthly payment, and remaining balance, will remain the same. Here are the steps you should take:

First, carefully read the notice you received. Check if there is any mention of a change in your mortgage servicer. Sometimes, the lender retains servicing rights even after selling the mortgage. If there is a change in the servicer, make sure to update your payment process and redirect your payments to the new servicer. It is also crucial to double-check the effective dates and ensure you know when to stop sending payments to the old servicer and start sending them to the new one.

Next, verify the legitimacy of the notice. Unfortunately, scams and fraud do happen, and you must be cautious. Contact your current loan servicer to confirm the transfer before sending any payments to a new servicer. Check if the transfer notice is correct, and verify your current loan balance, escrow balance, and the date of the last payment received. Ensure that the information you receive is accurate.

Additionally, review your closing documents, including the promissory note and deed of trust. These documents may contain information about the original lender and any subsequent transfers of ownership. You can also check with Mortgage Electronic Registration Systems (MERS) if your mortgage has been securitized. MERS tracks loan servicing and ownership changes for many mortgages in the United States.

Finally, don't hesitate to reach out if you have any questions or concerns. Contact the new servicer if anything is unclear, and they should be able to provide you with more information. Remember, while you cannot prevent your mortgage from being sold or transferred, you have rights under the Real Estate Settlement Procedures Act (RESPA) that protect you during this process.

How to check who owns your mortgage

It's not always easy to tell who owns your mortgage, as many mortgage loans are sold and the servicer you pay every month may not own your mortgage. Here are some ways to find out:

Check your mortgage statement

The first step in determining who owns or backs your mortgage is identifying your loan servicer. The servicer might be the same company as the loan holder, but not always. Your monthly mortgage statement usually includes information about your loan servicer, the company that collects your payments, and can provide details about the current owner of your mortgage. The servicer will also be listed in your payment coupon book if you have one.

Contact your servicer

You can look up who owns your mortgage online, call, or send a written request to your servicer asking who owns your mortgage. The servicer has an obligation to provide you, to the best of its knowledge, with the name, address, and telephone number of the owner of your loan. You can send a Qualified Written Request or a Request for Information.

Check with MERS

If your mortgage has been securitized, you can check the Mortgage Electronic Registration Systems (MERS) website. MERS tracks loan servicing and ownership changes for many mortgages in the United States. If you have a MERS loan, you can also call the MERS Servicer Identification System toll-free at 888-679-6377.

Check online tools

Many mortgages are owned by Fannie Mae and Freddie Mac, both of which offer a mortgage lookup tool on their websites. You can also check the Freddie Mac loan-lookup tool to find out if Freddie Mac owns your loan.

Review your loan paperwork

You might be able to find out who backs your mortgage loan by reviewing your loan paperwork. To determine if you have an RHS-guaranteed loan, ask the servicer or check your closing documents from when you took out the loan. Review the HUD-1 Settlement Statement and attachments to the note. You can get more information about these types of loans on the USDA Rural Development website.

Pick a lender that retains its own loans

If you need a future loan, you can choose a lender that retains its loans, also known as a portfolio lender. Only smaller, local banks typically have this business model. When shopping for a future loan, read the mortgage servicing disclosure statement that the lender must provide.

What happens when your mortgage is sold

If you receive a notice that your mortgage has been sold, don't panic. While it can be alarming to find out that your mortgage has changed hands, it's actually quite common. Mortgages are bought and sold all the time, and the good news is that it shouldn't affect you financially. The terms of the loan—your interest rate, monthly payment, and remaining balance—will remain the same.

That said, it's important to keep an eye on your information during this transition. While your loan terms won't change, mistakes and errors can happen. Make sure to read the notice carefully and look for any mention of the mortgage servicer changing. The servicer is the company that manages the loan, collecting and processing your payments, managing communications, and paying taxes and insurance from escrows. Sometimes, the servicer stays the same, even if the loan has been sold, in which case you'll continue to make the same payments to the same source. However, if the servicer changes, you'll need to update your payment process and redirect your payments to a different entity.

To avoid fraud, if you receive a notice from a new servicer without prior notification from your current servicer, don't send any money. Contact your current servicer to verify the change. You have the right to receive notices and information about the transfer from both your current and new servicers under the Real Estate Settlement Procedures Act (RESPA). To find out who currently owns your mortgage, you can check your monthly mortgage statement, which should include information about your loan servicer and the current owner of your mortgage. You can also look up who owns your mortgage online, call, or send a written request to your servicer asking for this information.

The difference between originator, lender, owner, and servicer

If you want to know whether your mortgage has been sold, you can check your monthly mortgage statement, which usually includes information about your loan servicer and the company that collects your payments. You can also check the Mortgage Electronic Registration Systems (MERS) website if your mortgage has been securitized. MERS tracks loan servicing and ownership changes for many mortgages in the United States.

Now, here's an overview of the difference between the originator, lender, owner, and servicer:

Originator

The originator, also known as the lender, is the bank or mortgage company that provides the loan to the borrower. They are the ones who approve, fund, and own the loan initially. The originator is the person or entity that helped you apply for the loan and sent your application to the lender's underwriting department.

Lender

The lender is sometimes referred to as the "owner" of the loan. They have the right to enforce the loan agreement, receive payments, and initiate foreclosure if the borrower defaults. The lender selects the servicer, but the borrower chooses the lender. The lender may also require the borrower to have private mortgage insurance (PMI), which reimburses the lender if the borrower defaults and the home's value is insufficient to cover the debt through foreclosure.

Owner

The owner of the loan is typically called an "investor." The owner could be the original lender or a subsequent investor who purchased the loan from the originator. The owner has the right to enforce the loan agreement, receive payments, and initiate foreclosure if the borrower defaults.

Servicer

The servicer is the company that manages the loan on behalf of the owner. They collect and process the borrower's payments, manage communications, pay taxes and insurance from escrow, and calculate monthly payment amounts. The servicer is responsible for providing monthly billing statements, contacting slow payers, and answering questions about the account. The servicer may be the same as the owner, or it may be a separate company that the owner has hired to manage the loan. It's important to note that the servicer can change during the life of the loan, and you should receive notices of any such changes.

What to do if you've recently sent a payment to the previous mortgage owner

If you've recently sent a payment to the previous mortgage owner, don't panic. There is a 60-day grace period after servicing rights have been sold, so your payment won't be considered late. Keep in mind that you should receive two notices: one from your current servicer and one from your new servicer. Review these notices carefully and confirm when you need to start sending payments to the new servicer.

It is important to keep detailed records of your mortgage statements, coupon books, payment receipts, and any other relevant documents. This includes both physical and digital records. Should any issues arise, having these records will allow you to confirm your payment history and resolve any discrepancies. You can also use online tools, such as those provided by Fannie Mae and Freddie Mac, to look up information about your loan servicer and the current owner of your mortgage.

During the transition period, pay close attention to your account to ensure that all your payments are credited accurately. If you notice any errors or discrepancies, don't hesitate to contact the new servicer and address the problem as soon as possible. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB) if you have specific concerns. Remember, your mortgage being sold to another lender does not affect your credit score.

To avoid potential issues with your payments, update your payment process as soon as you receive the necessary information from the new servicer. If you use auto-payments, you may need to redirect your ACH withdrawal to the new servicer. Alternatively, if you mail a check, confirm the new address and make any necessary adjustments.

Frequently asked questions