The Bank Just Sold My Loan, Now What?

A Letter from the Postman

For some time virtually all lenders have included a clause in their mortgage paperwork giving them the right to sell your loan to another investor. Such a sale has important ramifications on the operation of the mortgage markets and aids to continually infuse these markets with new cash so that new mortgage loans can be made. At the time you signed the paperwork closing your loan, the lender’s right to sale was disclosed and you acknowledged the disclosure in writing. Typically, the way you find out that your loan has been sold is by mail. The impact on you is negligible, usually requiring only that your monthly payment will now be sent to a new address, payable to the new investor or his servicing agency.