banks selling mortgages, can the consumer choose?
The servicing of my mortgage was sold to a bank that I don't care to work with. Is there any way for me to change the bank which services my mortgage, beside applying for a new loan with someone else? It doesn't seem fair that a consumer doesn't get to choose who they work with... I know I didn't get to say "no, don't sell my mortgage to that company I don't like them..."  |
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| When you got the mortgage, In the contract, it would have been in fine print, saying whether or not they have the option to sell you mortgage to another company. You really have no choice. My Mortgage Company, in my contract, stated they would not sell it, so they can't.
Sorry, but I don't think there is anything you can do. (But I"m not an expert either) |
| I don't think you can, but I don't know for sure. When we first bought our house, we bought it through our bank. We had it about two months and they sold the loan to Washington Mutual Bank. Actually, I think it was another company before Washington Mutual, but I can't remember the name of it. As long as it didn't change our interest rates or anything, it didn't bother me. Then again, it's only been sold to banks that aren't local so I don't have any other experiences with them. I do miss just walking into my bank to pay the mortgage though! We had the car, mortgage, and my student loans through them - made paying bills so much easier! lol |
| I'm pretty sure you can't, unless you had something previously specified when you bought your home. We bought ours about a year and a half ago and so far we've had the original mortgage lender, plus 2 (maybe 3?) other ones since (sold, then sold again, then sold again)... |
| Maybe I can just hope that our mortgage will be sold to someone else down the road. I would prefer to work with ANY bank but the one we have right now!
I still think legally we should have a choice about who our business gets sold to. I don't care if the service gets sold somewhere but I should get a choice as to whom I give my business to. Maybe I should write my congressmen. |
When you get a mortgage, they will tell you if your mortgage can be sold. Thats your really only choice, not choosing them, and pick a bank that does not sell their mortgages (like the one I have). let us know what you hear though, very informative info here  |
| When you signed your loan papers they usually disclose that the loan will be sold. That's pretty normal unless you have extremely good and long term credit or there are a few lenders that keep things in house.
The good news is they will probably sell it again in a while. |
When we signed our mortgage our bank flat out said that it definitely would be sold. They only do the initial mortgage and then they make money off of selling it to someone else. It ended up getting sold 6 times before we refinanced down to 15 years. It seemed like every month the check went to someone else!  |
| There are many thousands of banks/brokers that originate mortgage loans and only a few dozen that actually service them. If your paperwork says that the loan can be sold, you don't have a choice. Similar things happen with car loans. |
| I remember when I got one refinance with the company that financed my very first purchase loan -- it was about a year after the purchase, so this was in 1993.
They hadn't sold the loan, they were still servicing us. When we refinanced, I think a new law (Maybe it was in before, I dunno) required them to disclose the percentage of loans sold. It was 0-25% (in fact the broker told us they keep all of their loans in house.) A month later they chnaged their minds and my loan was sold and resold and resold a whole bunch of times. The first two mortgages were life changing! The first was to become a homeowner, and the second was to actually to be able to afford the mortgage! My latest refinance (about 15 months ago) was important to rearrange our finances. After having a 15 year and being out of work for so long, our equity was building rapidly, but our bank account was shrinking just as fast! My latest refinance I don't recall such a disclosure, perhaps there was one. Refinancing isn't such a "big deal" anymore so the details are foggy. The same company that made the loan is still servicing it. BTW, I got a GREAT rate. Not the best in the world, but it was 5.375% for a 30 year, no points, no closing costs, no documentation loan. |
Wow - home loans are scarey!  Can they raise your payments that significantly without your consent? |
| There are 2 ways loan payments can be raised as far as I know:
A) You have an adjustable rate loan(arm)... if the interest rate rise on the loan, so too do you payments B) you have some items, such as taxes and insurance escrowed into your loan (we have this) If your property taxes get raised, and THEY DO your payments will get higher to cover the amount of the escrow. ARMS are kinda scary... our loan is at a fixed rate for the first 7 years, after that the rate is adjustable. We hope to refinance into a fixed rate mortgage at that point. |
Integra Hellsing wrote: Wow - home loans are scarey!
Can they raise your payments that significantly without your consent?No - if you have a fixed rate loan and it is sold to another bank, the terms stay exactly the same. On a fixed rate loan principal and interest payments are fixed for the term of the loan (15 or 30 years, for example). The variable is the escrow amount you pay monthly to cover property taxes and insurance premiums. If your taxes and insurance go up, the bank will adjust your monthly payment to cover that. |
| I had 4 different loan companies in the first 4 month of the first mortgage.
We refinanced last October which was a complete nightmare. We have also had four different companies with this loan. Two of them before the first payment was due Then Washington Mutual, who bought it almost immediately which I find funny since they turned us down when we applied. They only lasted about a month or two. Thank goodness, because I did not want to deal with them. I had a credit card that was bought by Washington Mutual and they really messed up my account.  The company I have now I have dealt with many times as a Real Estate agent and I am happy they have the loan. Also because they are not just a loan payment center, but they furnish loans and can refi for you. Which we hope to do again in a few years. |
| I'm trying to figure out what Integra meant-- the only think I can figure is the 0-25% in my post was confusing.
That was the percentage of loans that the company sold to other servicers rather than keep themselves. So if they closed 100 loans, somewhere between 0 and 25 of them were resold. But that was historical and, like I mentioned, they changed their minds and sold off 100% of their loans a month later. |
Ok! I get it now!  From the way it sounded it was if your mortage was sent somewhere else they would not honor your contract and raise your mortgage.
I'm not sure how it all works sometimes because I've neve taken out a loan for something like that before.  It just sounded weird that the mortage would get sold in the first place... kinda creepy... |
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