One of the questions I’m often asked is “what happens when my loan is transferred to another loan servicer?“. It is not uncommon for a financial institution to transfer the servicing rights on a mortgage to another financial institution. 99% of the time there is no fall out from this event. The only thing that changes is the mailing address for the monthly mortgage payment. The terms of the mortgage cannot change.
Having said that, if you are a consumer that is having problems with your loan servicer (even if your loan has never been transferred) the good news is that their are consumer protection laws in place to defend you. The Real Estate Settlement Proceudres Act (AKA “RESPA”) includes provisions which regulate the servicing of a mortgage loan.
To read about these protections from a consumer’s perspective CLICK HERE.
To instructions on how to file a complaint with the Consumer Financial Protection Bureau CLICK HERE.