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Resold mortgages

I asked my prospective lender out of curiosity if they sell their mortgages. The loan officer confirmed that my mortgage would be sold. I realize the terms will remain the same, but I picked this bank because of their service record. I have no way of knowing what company will be servicing my mortgage in the future and how responsive, etc. they will be. Is this the standard in the business? Or is there any hope in shopping around? by chrish_629_266 from Cheyenne, Wyoming. Sep 29th 2011 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

This is standard... most all mortgages are sold, and there is no control of who will buy it... but rest assured... just about everyone out there today allows automatic payment or ebill. WilliamAcres.com

Sep 29th 2011
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Corey Barcus (Mtg_Pro)
#44 ranked lender in Pennsylvania - 16 contributions

Most mortgages are sold. However, some lender have whats called Portfolio Products that stay with the Lender and are not sold, ever. We have Portfolio loans and the rates are the same as any other loan. In cases with really good credit the rate is actually better. If you would like to contact me to discuss call 412-328-3241 or email me at cbarcus@cbcnationalbank.com

Sep 29th 2011
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Glenn Main (gmain07)
#41 ranked lender in Maryland - 10 contributions

If you were to go with some of the bigger lenders they usually don't sell their mortgages.

Sep 29th 2011
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Rudi Hofmann (CaPortfolioLoans)
#279 ranked lender in California - 380 contributions

This is the standard and "bigger lenders" do sell their loans. That's why there are so many law suits now.Portfolio lenders do not sell their loans. Portfolio lenders are usually smaller banks and credit unions.Happy funding, Rudi

Sep 29th 2011
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Jeff Hutchison (jhutchison)
#14 ranked lender in Iowa - 40 contributions

Some times the mortgage copmany doesn't actually sell the loan, they just transfer servicing rights to another company. The "other company" is typically a bigger lender who has a servicing department set up to handle large amounts of volume. Set up an automatic bank draft and you shouldn't have any problems.

Sep 30th 2011
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craig tessem (craig@harlowcapital.com)
#40 ranked lender in Colorado - 2 contributions

The mortgage and the mortgage servicing rights are separate issues. The mortgage can be sold and the servicing rights retained by the mortgage originator. The serving rights can be severed from the mortgage. It depends on the circumstances. Some mortgage banks, like ourselves, attempt to retain the servicing rights as a way of maintaining a banking relationship with the customer after the loan is sold. It is also a method of maintaining an income stream associated with sold loans.Most mortgages are sold, sometimes several times. For example, over 95% of all residential home mortgages originated today are sold to Fannie or Freddie (the government sponsored mortgage companies). Most banks sell all of their originated mortgages. You could try calling small, well capitalized, community banks. A few do not sell all of their mortgages and retain mortgage servicing rights..

Sep 30th 2011
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