Login You are here: Blog Home Your Mortgage My loan has been "Sold". What does that mean? My loan has been "Sold". What does that mean? Posted on Mar 22, 2019, 9:45:47 PM GMT It's natural to wonder what it means when the servicing rights to your loan are "sold" to a new servicer. Some may even worry about this common occurrence. Have no fear, Freedom Mortgage is one of the nation's leading servicers of home loans. Read more to learn about the important role mortgage servicers play for homeowners. Who "Services" My Loan and what's their role? Your mortgage servicer may or may not be the mortgage company you worked with on your initial home loan. If you refinance or buy a new home through Freedom Mortgage, we usually service your loan. However, in some instances, your initial mortgage company will transfer servicing rights to another company with the skills and resources to service your loan well. These transfers are common and are done for a variety of reasons. What's important to know is that your mortgage servicer issues your monthly billing statement, manages your escrow account (if applicable) and keeps you informed about your mortgage loan. Your monthly statement Each month, your servicer delivers a statement showing the progress you've made toward paying down your mortgage. Your mortgage servicer collects your payments and applies them towards principal, interest, taxes, homeowner's insurance and mortgage insurance (if applicable; commonly referred to as "PMI" or "MIP"). Managing your escrow account If an escrow account was set-up when you took out your loan, it is used to hold funds to pay your property taxes and homeowner's insurance when those bills are due. Usually, at least two months' worth of funds are required to cover any tax rate or insurance premium increases. Your servicer performs an annual analysis and provides an escrow account statement detailing estimated taxes and insurance premiums for the upcoming year. Keeping you informed Keep an eye out for important communications from your servicer. They'll let you know: If your servicing rights are transferred Details about your loan in case of a natural disaster or financial hardship How to set up online accounts and automated payments About any changes to your account At Freedom Mortgage, we look forward to answering any questions you may have about your account. You can send us an email to customercare@freedommortgage.com with your account number. Sources: https://www.bankrate.com/finance/mortgages/mortgage-sold-to-a-servicer.aspx https://www.investopedia.com/ask/answers/100314/whats-difference-between-mortgage-lender-and-mortgage-servicer.asp https://www.consumer.ftc.gov/articles/0190-making-payments-your-mortgage-servicer https://www.mrcooper.com/support/escrow/analysis Facebook external website opens in a new window Twitter external website opens in a new window Linkedin external website opens in a new window Related Posts: Understanding your monthly mortgage statement Your billing statement has a great deal of information to help you understand your mortgage. How to set up automatic recurring payments to Freedom Mortgage Freedom Mortgage customers can enjoy the convenience of scheduling automatic mortgage payments online! Look for your 2020 mortgage interest tax statement To download a copy of your Form 1098, log into your Freedom Mortgage account and select "Statements" from the right-hand menu. Renovations madness game You are living the dream of homeownership, but you want to make sure your home maintains that charm and comfort that attracted you to it in the first place. Contact Us 855-690-5900 Contact our Customer Care team Experiencing financial difficulties? We’re here to help you. Account Log In New Customers Pay My Mortgage Register My Account COVID 19 Information About Us Who We Are In the Community Careers Loan Types Conventional Loans FHA Loans VA Loans USDA Loans Divisions Correspondent Lending Wholesale Services Roundpoint Traditional Retail 951 Yamato Road, Boca Raton, FL 33431 United States | Lender NMLS ID: 2767. NMLS Consumer Access. Equal Housing Opportunity. Disclosures | © Freedom Mortgage Corporation.