As long as I’ve owned a home, I’ve had a mortgage. The mortgage I generally have had is usually through whatever lender came through at the time of my home purchase, but isn’t necessarily one of my choosing – it hasn’t mattered much on the company though, because as long as the mortgage rate was what I agreed to, it didn’t matter to me. Within a year or so of buying the home and establishing the mortgage, it always seems that the initial lender “sells” off the mortgage to another institution or bank. When/if that happens, the new company assumes the same terms and my mortgage remains unchanged. Same thing when I have refinance the home – the refinance company comes in with a better rate (used to, at least) and within a short time frame, sells the mortgage off to another company. To make things even stranger, this has happened to me even with an established mortgage of several years with the same company/bank. I can’t fathom why/any benefit the banks get from doing this.
TL;DR: why do banks sell/transfer mortgages around if there is no change to your term? How does it benefit them?
In: 293
I wish there was a way to prevent your bank from selling your mortgage. Even if the terms stay exactly the same it’s frustrating to have no control who takes over the payment process. They might have terrible customer service, a slow website, who knows.
In my case we reached out to chase bank for a mortgage. The amount they offered to loan us was laughably small for the market we were looking in. The person on the phone was totally ignorant of the local real estate market and flabbergasted at the cost of even a modest two bedroom house.
We went with another broker who loaned twice what chase offered. A few months later, chase bought our mortgage. Makes no sense to me.
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