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Why does my mortgage companies keep selling my mortgage again and again. How will this affect credit score?

Tuesday

Companies keep selling my mortgage over and over again. Its a fixed rate mortgage and i have had it since 2004. We started with HSBC and as of now the mortgage has been sold 4 times to 4 different companies. Should i be alarmed? I plan on moving in the next year, is there anything i should do to protect my self? Thanks

This happens all the time and it doesn't effect your credit score in any way. No need for concern here.

Mortgages are sold in bulk on the secondary market. Investment companies review "packages" of mortgages and purchase them from lenders. This frees up money for lenders to make new loans.

Hope this all makes sense, but there is no need for you to be concerned, that is the bottom line.

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  1. kemperk
    May 12th, 2009 at 16:48 | #1

    do not in any way be concerned.
    if in doubt about the legal debt due to any
    lender who finally sends you a coupon book or whatever for payment, you are in your rights to make them prove they own the debt.

    Mine was sold 3 times in 2 weeks.

    means nothing!

    does not affect credit in any way
    [or it might, it might gave you a premature
    good evaluation with the first lender.]
    References :
    RE broker

  2. erchnic
    May 12th, 2009 at 17:26 | #2

    As long as you pay your bills on time, you have nothing to worry about. That's how banks do business. How do you know they sold the loan? Are you actually dealing with four different companies? Have your credit check run by any of the three major credit companies, just to be sure.
    References :

  3. godged
    May 12th, 2009 at 18:00 | #3

    This happens all the time and it doesn't effect your credit score in any way. No need for concern here.

    Mortgages are sold in bulk on the secondary market. Investment companies review "packages" of mortgages and purchase them from lenders. This frees up money for lenders to make new loans.

    Hope this all makes sense, but there is no need for you to be concerned, that is the bottom line.
    References :
    Oregon Realtor

  4. Jeromy W
    May 12th, 2009 at 18:34 | #4

    This isn't suprising, I know HSBC does sell some of there business, it depends on the product and/or origination channel. This really will not effect your credit in any way unless you miss a payment. There are laws to protect you. The old servicer has 15 business days to inform you that your loan is being sold. The new servicer has 15 days after purchase to inform you that they are servicing your loan. You have 60 days in which you can make a payment to the old servicing company without penalty. You can look these up if you want. I would have a full credit workup just to make sure a company hasn't reported you late when they should not have. As long as you make your payments on time, your ok
    References :
    7 years mortgage experience

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