Thorough communication can also be an asset when dealing with your banking institution. Experts urge borrowers to notify your bank in the case of a mortgage sale, even if you may believe the bank is aware of the situation. For example, says Vidal, if you have been paying by electronic funds transfer, you will have to give authorization to your bank to direct the transfers to the new company. Steve Bailey, executive vice president of loan administration for Countrywide Home Loans in Calabasas, Calif., notes that most mortgage transfers are seamless. These days, transfers are handled elegantly.
Most lenders recognize that a loan was recently transferred.
Tax handling could change. Tax handling is one of the items that may call for adjustment once servicing is transferred, said Vidal. In any case, according to the Mortgage Bankers Association, the insurance company, as well as the taxing authority, should be notified of a change in the servicing of the loan. Be aware of changing delinquency policies. Higher interest rates can trigger delinquencies, says Bailey, while delinquencies also increase naturally as loan portfolios age.