Rules For Mortgage Transfers That Protects Consumers


The Federal Reserve have rules in place that help mortgage borrowers by informing them when their mortgage loans get transferred to another company. When these rules were not in place, if your loan was transferred or sold from the current lender to a new lender, the new lender didn't have to inform the borrower that it acquired your loan. The rules now in place, will make sure that you know who owns your loan. The Federal Reserve's rules now state that you will know who owns your loan and who can handle certain issues, including loan modifications and payment disputes.

How these rules work

The rules set by the Federal Reserve now require the company that acquires your loan to send you a notice within 30 days of acquiring it. Among other things, the notice must disclose the following:

1) the new owner's address, identity and phone number;

2) when the loan was transferred; and

3) the contact information that you can use to reach an agent or other party, if any, authorized to act on behalf of the owner.

New loan owners are required to send you these notices for:

1) any loan you have taken out on your principal dwelling (so loans on a business properties or vacation homes would not be covered), including loans to refinance or purchase your home; and

2) second mortgage loans, also known as home equity loans, and home equity lines of credit (HELOCs).

Even with a new loan owner, the company that handles or "services" your loan might not change and you might continue to send your mortgage payments to the same address. You will receive a separate notice, if that loan servicer changes.

For more information on mortgage servicing and transfers please visit the Federal Trade Commission website or the Federal Reserve website.

Although all information is written in good faith and has been reviewed, please email us at [email protected] to report any inaccuracies.