Our mortgage was sold to NewRez

[lanejudy]

A typical mortgage in the US might be a 30-year note, which locks in the interest rate for 30 years (assuming no refinance later). Aren't Canadian mortgages handled differently -- like every 5 years they get renewed and the interest rate adjusts? It's a very different process.

 

[Moliphino]

In the US companies can choose to sell the mortgages they hold to another company. You have no control over that, is largely something that happens as a behind the scenes financial transaction and generally means nothing to you. We have gotten letters in the past informing us this was happening and honestly made no difference in how we paid the mortgage. Perhaps Canadian laws are different.

And not just mortgages. Student loans and car loans are also sold off all the time.

 

[aprilgail]

how does a mortgage get sold? I’ve never heard of such a thing.

They get sold all the time- My daughter bought a house 2 years ago and mortgage was sold twice already to different companies- now she has Mr Cooper. No big deal. In 20 years I have never had to use customer service for a mortgage ever- I wouldn't care who it was sold to.

 

[CdnCarrie]

They get sold all the time- My daughter bought a house 2 years ago and mortgage was sold twice already to different companies- now she has Mr Cooper. No big deal. In 20 years I have never had to use customer service for a mortgage ever- I wouldn't care who it was sold to.

I guess it's just not done here in Canada.

 

[Robbie Cottam]

Mine got sold after the first year but I haven't had any issues with the bank that bought it.

That's pretty normal..... Some banks write mortgages, hold them for up to 18 months, and then resell the notes to raise capital, to write more notes.

Other banks buy notes and hold them until it is more profitable to sell them...

 

[barkley]

As for escrow - no idea why people do that. I'll deal with my bills directly thanks

we had escrows with no problems for years-the financial institutions did a pretty good job estimating what was needed so no drastic shortfalls or overpayments BUT when we last bought the numbers on the escrow were wildly off what i knew to be accurate (several hundreds of dollars per month). when i questioned it i was told the amount the lender had used for the insurance/property taxes and told them they were WAY off. they insisted i was unfamiliar with the property tax laws in the state we were moving to/how much insurance would run. i explained that i had the insurance bid in hand and extensive research in just how property taxes worked in the new state-offered to fax it to the lender. 'no, no, no-this is the amount we've estimated and we don't like borrowers to manage their own escrows'. told them that either this borrower would manage their own or this borrower would find alternate financing.

we did our own escrow on our own with no problems (and they matched our figures vs. the lenders).

 

[BrianL]

Technically, my mortgage has never been sold, but the entire bank that held my mortgage got sold to Wells Fargo. It did entail some changes to where I submitted payments, but otherwise northing was actually any different.

 

[kdonnel]

I am not sure many know that your mortgage servicer is not necessarily the owner of the mortgage.

And just because the servicer changes it does not mean the owner changed.

And just because the servicer did NOT change it does not mean the owner did not change.

Some mortgage owners service their own loans, some do not.

 

[Cannot_Wait_4Disney]

You should totally pay all those fees and get a higher interest rate....

And then that company will sell that to NewRez too.

 

[Robbie Cottam]

You should totally pay all those fees and get a higher interest rate....

And then that company will sell that to NewRez too.

That could happen