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Old 06-01-2015, 08:05 AM
 
533 posts, read 550,385 times
Reputation: 750

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People who worry or fret about their mortgage / home loan being sold to a new entity simply don't understand how the lending industry really works.

There are originators who write the initial loan, so that the consumer can buy the house.

But the originators do not have an unlimited supply of capital. At a certain point, they would have loaned out all their funds, & then had to close up shop, while the borrowers paid off their 30 year mortgages.

That's where the secondary mortgage market enters the picture.

Mortgage loans & servicing rights are routinely bought & sold between mortgage originators, securitizers, & investors. This process frees up the originator's capital, so that they can go & make more new loans to new buyers.

In the secondary market, loans are packaged into mortgage backed securities. They're sold to investors such as insurance companies, pension funds, & hedge funds. They're the ones who are actually carrying your loan, long term.

The secondary mortgage market helps to make credit equally available to all borrowers across the nation. Without it, home loans would be even more difficult to obtain than they are now.
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Old 06-01-2015, 10:13 AM
 
203 posts, read 198,821 times
Reputation: 404
We were thrilled when our mortgage, done through a smaller local bank, was sold to a big company. The bank wasn't set up to take online payments which meant we had to send a check through the mail every month (talk about archaic!). With the new bank came more resources, better technology and the ability to set up automatic draft or make online payments. SO much more convenient!
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Old 06-06-2015, 04:03 PM
 
Location: Tucson
420 posts, read 521,768 times
Reputation: 506
Our mortgage was sold to a REIT. But they apparently don't service the loan. We looked up the company that services the loan and we were dismayed at all the bad reviews. They are not a bank at all. It seems there is nothing we can do.
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Old 06-06-2015, 04:36 PM
 
19 posts, read 63,833 times
Reputation: 56
People who are satisfied with their loan servicer typically don't go and write positive reviews on the Internet. Every single of my servicers has had a ton of bad reviews. It doesn't mean anything.
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Old 06-07-2015, 06:38 AM
 
Location: Tucson
420 posts, read 521,768 times
Reputation: 506
Quote:
Originally Posted by KrischiDe View Post
People who are satisfied with their loan servicer typically don't go and write positive reviews on the Internet. Every single of my servicers has had a ton of bad reviews. It doesn't mean anything.
This is very true KrischiDe. I will try not to worry and see what happens.
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