Navy Federal (NFCU) Mortgage - Closing

[michgc]

Originally Posted by stp_fan

To the people who are saying they don't sell their loans...NFCU does indeed sell a portion of their mortgage loans to Freddie Mac, Fannie Mae and Ginnie Mae. All major banks/financial institutions do. It's just how it works. Costco probably sells some of their loans too. They make money doing it, and it provides liquidity in the market place for the banks to make more loans.

They may sell the loan, but they continue to service your loan for the life of the loan.

[stp_fan]

Originally Posted by michgc

They may sell the loan, but they continue to service your loan for the life of the loan.

They're all like that. All loans sold to Freddie/Fannie/Ginnie by any bank, are still serviced by the bank (or usually called Servicers). Freddie/Fannie/Ginnie don't service any loans, they just buy the rights to them. That's why borrowers/mortgagors always call the bank about their loan, not Freddie/Fannie/Ginnie. The banks service the loans.

You probably don't even care or need to care if your loan was sold to an investor or not sold (kept as an investment by the bank). But usually they will send a letter in the mail saying "Congratulations, Fannie Mae now owns your loan!". The only thing that is a negative, is if you go delinquent on your loan and it's sold to Fannie, you might...have to go through more bs...and longer timelines for things to happen.

But the point is, there is nothing unique or special about NFCU, they sell just like other banks and service the loans, just like other loans. But not to be confused by selling the actual loans to a different servicer/bank, like if it's a buyout, you know?

[michgc]

Originally Posted by stp_fan

They're all like that. All loans sold to Freddie/Fannie/Ginnie by any bank, are still serviced by the bank (or usually called Servicers). Freddie/Fannie/Ginnie don't service any loans, they just buy the rights to them. That's why borrowers/mortgagors always call the bank about their loan, not Freddie/Fannie/Ginnie. The banks service the loans.

You probably don't even care or need to care if your loan was sold to an investor or not sold (kept as an investment by the bank). But usually they will send a letter in the mail saying "Congratulations, Fannie Mae now owns your loan!". The only thing that is a negative, is if you go delinquent on your loan and it's sold to Fannie, you might...have to go through more bs...and longer timelines for things to happen.

But the point is, there is nothing unique or special about NFCU, they sell just like other banks and service the loans, just like other loans. But not to be confused by selling the actual loans to a different servicer/bank, like if it's a buyout, you know?

I know it doesn't mean anything but anecdotally, we had our mortgage in Vienna through NFCU for over 11 years. The loan was never sold. We went with Wells Fargo two months ago for our home in North Carolina. We already got the letter in the mail saying, "Congrats. Fannie Mae now owns your loan."

[stp_fan]

Originally Posted by michgc

I know it doesn't mean anything but anecdotally, we had our mortgage in Vienna through NFCU for over 11 years. The loan was never sold. We went with Wells Fargo two months ago for our home in North Carolina. We already got the letter in the mail saying, "Congrats. Fannie Mae now owns your loan."

Possibly because it's a credit union, they don't sell as many as a Wells Fargo or Chase. That's funny though, the first "Congrats" letter I ever saw was my friend's and his was through Wells Fargo too. lawl.