If you have previously gone through the process of buying a home, you may have already experienced having your loan sold to another company. If not, don’t worry if/when this happens to you as this is a very common practice in the industry. Most all loans in today’s market will be sold at least once throughout the life of the loan.
There are two parts of the loan that can be sold – the mortgage note and the servicing rights. This means that in some cases the owner of your mortgage note is not the same company you’re paying each month. Whenever there is a transfer taking place, whether it is your mortgage note or the servicing, you will be notified at least 15 days ahead of time.
One important thing to remember is that the transfer of servicing will not affect any conditions of your mortgage other than the terms directly related to servicing of the loan. Furthermore if you forget to send your payment to the new servicer, there is a 60 day window where your payment will not be considered late.