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From the perspective of a borrower, the 'sale' of your mortgage usually means that the servicing of your mortgage has transferred to a new company, meaning you will be sending your monthly payment to a new company. ... It is also not uncommon for you mortgage to be 'transferred' from one mortgage servicer to another.

When a loan gets sold, the lender has basically sold servicing rights to the loan, which clears up credit lines and enables the lender to lend money to the other borrowers. ... Another reason why a lender might sell your loan is because it makes money off the sale.

There is a clause in most mortgage contracts that says the lender has the right to sell the mortgage to another servicing company. If you're getting a notice that your loan is being sold, you basically have two options: go along with it, or refinance with another company.

About the home loan transfer process In turn, when your mortgage loan is sold to a new lender, they will handle the management of your entire loan, including payments, escrow accounts, insurance, and taxes. The selling or transfer can take place immediately after closing of your home loan or years later.

A transfer or sale of your mortgage loan should not affect you. “A lender cannot change the terms, balance or interest rate of the loan from those set forth in the documents you originally signed. The payment amount should not just change, either. And it should have no impact on your credit score,” says Whitman.

Rights When Your Home Mortgage Loan is Sold and Assigned to Another Lender. ... Simply put, if the written documents do not prevent the lender from selling the loan to the borrower and its servicing rights, the borrower has no rights to stop the transfer and assignment.

Your mortgage may change hands multiple times over the course of your time in a home. ... If that mortgage is transferred to Fannie Mae, it will either be serviced by your current lender or a new one, and your notification will come from both the old and new loan servicer.

Its original purpose was to buy mortgages from cash-strapped private companies to free up capital that would then encourage lending during the Great Depression. ... Fannie Mae typically buys loans from lenders of all sizes, from large-national banks to small community lenders and credit unions.

A transfer or sale of your mortgage loan should not affect you. “A lender cannot change the terms, balance or interest rate of the loan from those set forth in the documents you originally signed. The payment amount should not just change, either. And it should have no impact on your credit score,” says Whitman.

Transfer of Servicing In most cases, your current servicer must notify you at least 15 days before the effective date of the transfer, unless you received a written transfer notice at settlement. The effective date is when the first mortgage payment is due at the new servicer's address.