What happens if my mortgage is sold?

Short answer

If the ownership of your loan is sold, the new owner must notify you within 30 days of the transfer. A sale does not automatically change the servicer or the terms of your agreement. If servicing is sold, follow the new payment instructions so payments go to the right place.

Full explanation

Loan sales are common. The CFPB says holders often sell loans to another financial institution on the secondary market, which frees up money for new mortgages. If ownership changes, the new holder must send notice within 30 days after the transfer takes effect. The notice names the transfer date and how to reach the new owner, plus a payment-issue contact when that person is not the owner.

A sale of ownership does not automatically change the servicer. If servicing rights are sold, you will receive a separate notice. The CFPB says the terms of your agreement cannot be changed because of that transfer, but you must follow any new payment instructions so you do not miss a payment or send money to the wrong address.

The notice is the official record of the new owner or servicer. Keep it with your loan documents and update automatic payments if the instructions change.

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