Change of loan Servicing Company

Know your rights if your loan is sold.

The Lender’s letter begins, “We’re writing to inform you that your loan has been sold……”

Don’t worry. “Selling the loan” typically means that the servicing company has been changed. It just means that you will be making your payment to another company or person.

If the original  lender is an institutional lender you have specific rights as a borrower.

The Old Lender must notify you in writing, on their letterhead, at least 15 days before your next payment is due, the name of the new company, its address, phone number and the name of a contact person.

The New Lender must also write to you at least 15 days before your next payment is due. They must also give you their name, address, phone number and the name of a real person, (not voice mail) that you can call.

The Federal government created these guidelines a few years ago to protect consumers from scams when mortgage payers were notified by con-artists that their loan had been sold, when it had not. The crooks just pocketed the money and ran.

If you do not receive letters from both the Old and the New lender, contact your current lender to check.