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Company Loan Type APR Est. Pmt.

loan servicing

Posted on: 08th Dec, 2006 01:01 pm
if my lender transfers the servicing or sells the mortgage to another lender, would I be informed about it?

It is the responsibility of the new mortgagee or servicer to get all the records from the previous lender, like the complete loan file and loan origination and servicing records.

You should be notified by the previous lender within ten days before the due date of the first payment you will be required to make the new servicer or lender.

It is also necessary to state in the notice the name, telephone number and address of the new lender.

Posted on: 08th Dec, 2006 01:12 pm
As per National Affordable Housing Act, a mortgage lender or servicer is required to provide you with a disclosure statement at the time of loan application.

It should mention if the servicing of the mortgage can be sold during the life time of the loan. It is also required to state the percentage of loans which had been sold earlier by that lender or servicer.

Posted on: 08th Dec, 2006 01:32 pm

The new lender is also required to send you a notice within fifteen days after the transfer of the servicing takes place. Lender should also provide you with a statement stating that the changeover will not have any affect on the already specified terms and conditions of your mortgage.

For example, if previously you did not have an escrow account set then the new servicer can not demand the same to be created after the changeover. Also a grace period is to be provided to you during the changeover of the servicing.

During this grace period the borrower can not be charged any late fee if by mistake he sends the payment amount to the previous lender.
Posted on: 08th Dec, 2006 02:52 pm
Hi Retc,

Once the lender informs that your loan will be sold, you will receive two notices: one from the current servicer and the other from the new servicer. The current servicer is required to inform you about the servicing transfer at least 15 days in advance of the loan being taken over by the new servicer. The latter should send you a notice within 15 days after the transfer has taken place.


Posted on: 08th Dec, 2006 10:50 pm
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