Armed Polite Society
Main Forums => The Roundtable => Topic started by: zahc on April 09, 2011, 01:25:26 PM
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I just got a letter (1 month after buying my house) that my mortgage has been sold to Fannie Mae. It says that I'm still supposed to make my payments to Well's Fargo. I don't understand this very well. I thought Fannie Mae strictly meant FHA loans, which I don't have.
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Nope. Freddie Mac does the guvvie loans.
Perfectly normal, most loans are sold as the banks don't have the cash to carry the paper on all the loans they write.
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I've bought 3 houses over the last 10 years. Every single one they sold the loan before my first payment was even due. Caused a small problem as I'd been a little too much Johnny on the Spot and sent my first payment on the first house in a couple weeks early. I got the notice they'd sold the loan a few days after mailing the payment. Realized a month or two later they'd cashed the check but never forwarded the payment to the new loan servicer, so I was showing a month late on all my payments with the new servicer. Took a couple months to sort that out and get the record repaired.
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I refinanced my house via Wells Fargo a few months ago and our new mortgage was resold to Fannie Mae as well.
Chris
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Chase has never sold my loan.
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Chase has never sold my loan.
Personally I don't thinks should be able to do this. After all you do have a contract with the first lender not the others.
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First off, the contract you sign says they will sell it. It's hardly a bait and switch.
Second, you can get a loan they won't sell but the time frame will be shorter and the rate higher.
The only thing that makes long amortizations at low rates possible us the mortgage market. No one bank has the assets to lend millions of dollars long term at such low rates of return.
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My mortgage was with a bank that had a reputation for keeping loans in house, right up until the bank was taken over. It's been sold twice since then.
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Mine was sold at the closing.
Bank: "This is a form that states we can sell your loan. Sign here."
Me: *signs*
Bank: "This is a form that states we have sold your loan. Sign here."
Me: :O That was fast!
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Hey, making loans that you won't carry, and therefore won't eat if they go bad....how could this possibly go wrong?
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My mortgage with Wells Fargo was refi'd through the HARP program by Wells Fargo and then sold to Fannie Mae with Well Fargo remaining as the servicer. After all of these years and Wells Fargo convincing us to go through the HARP program, we did and now they really don't have our mortgage any longer...? Not sure I get all of the in's and out's of that. It's sounds similar to having nonstandard insurance to me. That's the best way for me to equate this. Now, my mortgage is about $300 less per month and we aren't planning to move anytime soon. Just not sure I fully realize the consequences, if any, of this action. Our original loan was with Wells Fargo for 9 years and they kept it. Now they've done this. I am not really upset but feeling a little out of the loop on something that I know I should be on top of.
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My Wells Fargo mortgage was refinanced with them recently and I received the same letter about it being sold also; my original Wells Fargo mortgage was from '95.
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If we could only work the system like they can!
My loan was sold to a new company and then back to the original company and now it it back with the second company.
I'm glad there are only three more years to pay.
jim
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Wow, this thread is back from the dead. Thread necromancy!
1 year, 8 months, 8 days since last reply. Heck, I've refi'd my house and had another psudo-closing since then.
carmikemom, in the future you might consider starting a new thread instead of posting to an significantly old one.
In response to your situation - it is very common for the debt of ones mortgage to be sold as a financial instrument to another investor. I believe this is common practice, as mortgages - while they have significance meaning to us; truly are just loans with defined terms and are bought and sold as such in the financial industry.
Whether this practice is a good idea in the broader, worldwide economic sense is certainly up for debate, but as the loan holder I believe it has negligible impact. In any mortgage I've heard of the original agreed upon terms are immutable regardless of who holds the debt.
I am confused why the monthly payment would have changed - you should consider calling the company servicing the debt for clarification. Perhaps there have been changes to the way in which insurance and property taxes are escrowed.
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I'm in the process of securing a mortgage through Wells Fargo. I signed a paper just the other day that specifically said they have the right to sell my loan and then it went into the details of my loan, with each detail having a yes/no box as to whether the buyer of my loan could change that detail. All mine were checked with no.
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I have had several mortgages sold to other banks over the years. Fannie Mae does not collect the money directly and it goes to Wells Fargo in this case. If another bank buys the loan, you would be notified that the payment goes to a different bank.
Why does it bother you that Fannie Mae has the loan? Part of the fix that is necessary for Fannie Mae and Freddie Mac is getting a folio of stable loans.
Just noticed this is a very old thread. I would be suspicious about a $300 drop in mortgage payments and I would enquire as to the present terms and conditions of the loan. I can check things on line and it states the payoff or when the loan matures there along with the interest rate.