Your Mortgage Was Sold: Here’s What It Means and How It Affects You

To you, your mortgage is personal. It represents the path you took to afford the home you’re living in. But if you’ve ever wondered, “Why do mortgage companies sell loans?”—the answer is simple: To them, your mortgage loan is also a financial asset. It’s common for mortgage loans to be sold or transferred between companies as part of regular business operations.

Your lender may sell the servicing rights to your loan to another company for a variety of reasons—usually to free up capital, reduce debt or earn a commission. And while it might feel unsettling to get a letter saying your mortgage was sold to another company, what matters most is understanding how that change affects you—and what stays the same.

Understanding the Players: Lender vs. Servicer vs. Investor

When your mortgage loan is sold to another lender or transferred, it helps to know who’s actually involved in your mortgage now. Here’s a quick breakdown:

• Lender: This is the financial institution that originally gave you the loan. They’re the ones who funded your mortgage at closing.
• Servicer: This is the company you send your mortgage payments to each month. The servicer handles the day-to-day management of your loan—things like billing, escrow and customer service.
• Investor: This is the entity that ultimately owns your mortgage. It could be a bank, a government-sponsored enterprise like Fannie Mae or Freddie Mac or even a private investment group.

Remember, if you’ve received a notice about your mortgage being transferred or sold to another company, it usually comes down to how the mortgage industry manages loans behind the scenes. Whether the servicing rights have been sold or your loan was packaged and sold to an investor, these transactions are standard practice, and they won’t affect the terms of your mortgage or how much you pay each month.

If your mortgage loan has been sold to another lender, don’t worry—you’ll be notified. Both your original lender and the new one are required to send you written confirmation. Your new lender will provide a loan ownership transfer notice within 15 days of the transfer date. This notice will include your name, contact information, the date the transfer takes effect and details about whether the change has been properly recorded in public records.

It’s important to read these documents carefully and make sure all your personal and loan information is accurate. Mistakes are rare, but they can happen—especially during a transfer. If anything looks off, don’t hesitate to reach out and ask questions.

Soon after, you’ll likely receive your first mortgage statement from the new company. Again, take a moment to double-check that everything—including your loan balance, interest rate and escrow details—looks right.

That’s pretty much it. While having your mortgage sold to another company may feel like a big deal, it’s often just a routine part of how the mortgage industry works—and it won’t change your loan terms or monthly payment.

If your mortgage loan has been sold to another lender, don’t worry—you’ll be notified. Here’s a list of what to look out for and actions to take to ensure everything is in order:

1. Watch for two notices. You should receive confirmation from both your original lender and your new lender. The loan ownership transfer notice must arrive within 15 days of the effective transfer date.
2. Review your transfer notice carefully, making sure it includes:
   1. Your correct name and contact information
   2. The official transfer date
   3. The name and contact info of your new servicer or lender
3. Check your first mortgage statement. Once your new lender or servicer sends your first statement, confirm that:
   1. Your loan balance and interest rate are correct
   2. Escrow and tax information match what you had before.
   3. The new payment process (online portal, mailing address, etc.) is clearly explained
4. Keep records of everything. Save all correspondence and statements for your files—just in case you need to reference them later.
5. Still have questions? Reach out to your mortgage broker—we’re always here to help you understand what’s happening and what (if anything) you need to do next.

It can be surprising to learn your mortgage has been sold to another lender, but, again, it’s actually a normal part of the mortgage industry. In fact, it may happen more than once over the life of your loan—whether you signed up for a 10-, 15-, or 30-year term.

The important thing to know is this: When your mortgage loan is sold, it doesn’t change your loan terms. Your interest rate, monthly payment and loan length all stay the same. The only real change is who services your loan—in other words, where you send your payment and who to contact with questions.

Make sure to update your payment info and send your next mortgage payment to the correct address. If you accidentally send it to your previous lender, don’t panic. Thanks to the Real Estate Settlement and Procedures Act (RESPA), you’re protected by a 60-day grace period where you can’t be penalized with late fees for payment mix-ups after a mortgage transfer.

Whether it’s because your mortgage loan was sold or you simply want to know where things stand, there are a few easy ways to track down information about who owns your mortgage loan. Here’s how you can figure it out:

1. Check your mortgage statement. Your mortgage statement should list the name and contact info of the current loan servicer—the company you send payments to. The servicer is often the one who will manage the day-to-day aspects of your loan, but they may not be the actual owner of your mortgage.
2. Review your closing documents. If you still have your closing documents, they should include the name of your original lender. While the lender may have sold your mortgage to another company, your closing documents can give you a good starting point for understanding who was originally involved in your loan.
3. Contact your loan servicer. If you’re still unsure, simply reach out to your loan servicer. They can confirm whether your mortgage has been sold and provide you with the current owner. They’ll also explain who to contact with any further questions.
4. Use an online mortgage lookup tool. Some online tools can help you find out who owns your mortgage. These services usually require some basic information—like your loan number and personal details—but they can quickly point you in the right direction.
5. Check with MERS (Mortgage Electronic Registration Systems). MERS is a database that tracks the ownership and servicing rights of most U.S. mortgages. You can visit their website and search for your mortgage using your loan number. MERS can show you who owns your loan and who’s responsible for servicing it.

These steps should help you determine who currently owns your mortgage, whether it’s been sold or transferred and guide you to the right point of contact.

Once you find out your mortgage loan was sold, your first move should be to connect with your mortgage broker. At Blue Water Mortgage, we’re here to help you understand what’s happening and guide you through any next steps.

Next, take a few minutes to get familiar with your new loan servicer. Visit their website, set up an online account if you can and call their customer service line to confirm everything looks correct.

Be sure to review every document you receive from both the previous and current servicers. Double-check your personal details, loan balance and payment info—and save those documents in a secure spot.

It’s also smart to set up automatic payments through your new lender as soon as everything is confirmed. This makes it much easier to transition in the future if your mortgage is sold again, which is not uncommon.

At Blue Water Mortgage, our team believes in clear communication—so you’re never left in the dark. If your mortgage was sold to another lender and you have questions, don’t hesitate to reach out. We’re here to help.

Q: Is it normal for mortgages to be sold?

A: Yes, it is very normal for mortgages to be sold. In fact, most mortgages are sold at some point (and often more than once) during the life of the loan. While it might feel personal to you, to lenders and investors, your mortgage is a financial product. Selling loans helps lenders free up capital so they can offer new mortgages to other homebuyers. But don’t worry—your loan terms, interest rate and monthly payment won’t change.

Q: Why does my mortgage keep getting sold?

A: It typically comes down to how the mortgage industry works. Lenders sell mortgage loans (or the servicing rights) to investors or other lenders to manage risk, bring in revenue or make room for new loans on their books. This process is routine and usually nothing to worry about. The important thing is that you’re protected by federal law, and your loan terms will stay the same.

Q: Can I skip a payment if my mortgage is sold?

A: No, you should never skip a mortgage payment. When your mortgage is transferred to a new servicer, you’ll get written notices from both the old and new companies. That said, under the Real Estate Settlement Procedures Act (RESPA), you’re given a 60-day grace period where you can’t be penalized for sending a payment to the wrong place. Still, it’s best to confirm the new payment address right away and keep making your payments on time to avoid any issues in the future.

Q: How do you find out who owns your mortgage?

A: There are a few easy ways to figure out who owns your mortgage:

• Check your most recent mortgage statement. It’ll list your current loan servicer, who is responsible for the day-to-day logistics of your mortgage.
• Review your closing documents for the name of your original lender.
• Call your servicer directly—they’re required to tell you who owns your loan.
• Search the MERS (Mortgage Electronic Registration Systems) database online.
• Use a mortgage lookup tool from Fannie Mae or Freddie Mac.

If your mortgage loan was sold to another company, don’t worry—you’ll receive a notice in writing with all the details, including where to send payments and who to contact for help.