Will My Mortgage Be Sold or Transferred to Another Servicer After Closing?

Why do lenders sell or transfer mortgage servicing?

Selling or transferring the right to collect your payments (called "servicing") is a standard, everyday part of how mortgages work. Many loans are pooled and sold on the secondary market as mortgage-backed securities, which frees up cash so lenders can fund more loans for other borrowers. This has nothing to do with your creditworthiness or how you've paid, and it doesn't mean your lender is in financial trouble. It's simply how the mortgage industry is structured, and it happens to a large share of loans nationwide.

What changes, and what stays the same, when servicing is transferred?

Nothing about your loan itself changes. The interest rate, outstanding balance, monthly payment amount, and number of years left on the loan all carry over exactly as they were. What can change is who you contact, where you send payments, and how you log into your account online. Federal rules require that you get written notice at least 15 days before a transfer takes effect, so you shouldn't be caught off guard. If you ever get a notice you're unsure about, you can confirm it's legitimate by contacting your current servicer using the phone number or website you already have on file, not one printed only in the new notice.

Does this lender service loans in-house, or does it sell servicing?

This varies by lender and even by loan type, so it's worth asking directly before you commit. Lenders in our network commonly service loans in-house for the life of the loan rather than selling servicing rights elsewhere, and some pair that with a program that waives certain fees if you refinance with them later after rates drop. Some lenders also report keeping the large majority of the loans they originate in-house rather than selling to unrelated servicers, with informal figures cited as high as the 90 to 99 percent range, though selling servicing remains completely normal industry-wide and doesn't put your loan at risk either way. Home equity lines of credit and similar second-lien products are sometimes handled differently than a first mortgage; some lenders route that servicing to a partner credit union instead of managing it themselves.

It depends on your situation

• If your lender keeps servicing in-house: you may deal with the same company and point of contact for the life of the loan, though this can still vary by loan program.
• If your loan is sold or transferred to another servicer: both your old and new servicer must notify you in writing in advance, your online portal and mailing address will change, but your rate, balance, and payment amount will not.
• If you have a HELOC or home equity loan: it may be serviced by a different company than the one that serviced your first mortgage, even if both loans came from the same lender.
• If you're not sure who currently services your loan: check your most recent monthly statement or any transfer notices you've received, and call the number listed there directly.

Related questions

• how Do I Know a Mortgage Company or Loan Officer Is Legitimate and Not a Scam
• why Do Mortgage Applications Ask for Demographic Information Like Ethnicity, Race, or Gender
• can a Builder or Servicer Force You to Use a Specific Lender
• do You Have to Give Your Social Security Number for a Mortgage Quote
• whether a mortgage quote is free with no obligation

Sources

• https://www.consumerfinance.gov/ask-cfpb/what-happens-if-my-mortgage-is-sold-is-my-loan-safe-en-199
• https://www.consumerfinance.gov/ask-cfpb/what-happens-if-the-company-that-i-send-my-mortgage-payments-to-changes-en-215
• https://www.consumerfinance.gov/rules-policy/regulations/1024/33
• https://www.rocketmortgage.com/learn/mortgage-servicing-transfer