Chase sold my mortgage to Nationstar LLC

[FLAJenn]

Nationstar has been my mortgage company since I built my house last year. They were the preferred lender with my builder, so we went with them to get  more discounts. I have had no problems with them since we closed on the house in October last year. My parents mortgage got sold to them after their house was done being built in April from Chase also and they haven't had any issues either.

[CF_Frost]

I work for a lender that has acquired loans that have been previously serviced by Nationstar.  I haven't been able to see any differences between their servicing and other lenders that have service transferred loans to us.  Then again, most of the transfers we have received have come from now defunct companies so that can be taken with a grain of salt.  Don't base your opinion on what you read on consumer complaint websites, but instead BBB ratings and the like.  If their BBB rating is an F as I believe someone mentioned in this topic, then yes that could be a potential issue I suppose.  You could also check their CFBP complaints in relation to their loan volume, but that goes back to my point on basing an opinion on a complaints medium (somewhat).  

[StartingOver10]

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@CF_Frost wrote:

I work for a lender that has acquired loans that have been previously serviced by Nationstar.  I haven't been able to see any differences between their servicing and other lenders that have service transferred loans to us.  Then again, most of the transfers we have received have come from now defunct companies so that can be taken with a grain of salt.  Don't base your opinion on what you read on consumer complaint websites, but instead BBB ratings and the like.  If their BBB rating is an F as I believe someone mentioned in this topic, then yes that could be a potential issue I suppose.  You could also check their CFBP complaints in relation to their loan volume, but that goes back to my point on basing an opinion on a complaints medium (somewhat).  

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^^^I disagree with the above comment. I understand the viewpoint, but disagree with the conclusion. The BBB is not a reliable gauge of the company's service abilities. It is a voluntary membership organization.

The original poster is a consumer.  As a consumer, we all have the right to choose the company with whom we do business. One of the glaring exceptions is in the mortgage servicing business where the loan and/or the servicing can be sold to anyone at anytime.

Remember to the mortgage servicer, their client is the owner of the note (loan) - NOT the consumer. The mortgage servicer is paid more by the note holder to service a loan in default than a loan that is not in default. Some servicers have methods to throw the consumer into default in order to beef up the mortgage servicers bottom line. The most popular one is claiming the consumer has no homeowners insurance so "forced placed insurance" is substituted at a much higher cost (look up this tactic). There are some very bad servicers in the mortgage servicing business.

The consumer has the right to feel comfortable with the company that services their mortgage. If the complaints on the various websites make the consumer uncomfortable, then the consumer needs to move their business elsewhere.  Unfortunately  in the mortgage business that means refinancing which can be costly.

If the consumer has to refinance to keep their loan from being sold again - then they need to go to a portfolio lender that services their own loans. Until there is another way to move the mortgage servicing to a decent servicer, this is the only way the consumer has to fight this, at this time.

[Anonymous]

My wife had the exact same freak out reaction as you back in July 2013 when BoA sold us to Nationstar - who she had never heard of and read all the horrible things on the web.

We have never had any problems with them since and their online website for the account is very easy to navigate.  So as long as you don't plan on falling behind, I don't think you will have any big issues with them.  We set up for the electronic alerts etc and we get email reminders and confirmation of payments.

We did have one time she had to call last year and the customer service was very nice.  We changed homeowners insurance carrier.  Well suddenly a few months later she noticed a huge hit and increase in our escrow.  She looked back online to see why and they "purchased" an outrageous homeowners policy for us and charged us (over $3k) for it.  She called the insurance department and found this out and they said they got notice of cancellation from our carrier.  She explained that she never lapsed in insurance, in fact for a month she had double policies becasue she forgot to cancel the orignial carrier when she got the binding for the new.  They were very nice, and reversed the charges right away, marked the account as she was able to send in the details right then and there.

It was really my wifes fault.......she forgot to update the mortgage with the new carrier info.   But, again, Nationstar's staff made it extremely easy to correct with no charges to us.

So, we are over a year now and all is ok so far.

I can't say how they work with lates or refi or any of those options as I have no experience.  But as for just month to month paying on time, no red flags here.

Hope that helps you breathe a little!

[CF_Frost]

If the BBB is an inaccurate means of gauging a company's integrity and capability, then it is impossible to quantify.

Most servicers get paid on a flat, per loan basis and losing files to foreclosures actually costs them.

Lender forced policies are remedied by faxing a declarations page to the servicer. Takes one phone call to your insurance company.

If there is an evil to servicers, it's if they allow themselves to be so understaffed that they are incapable of accurately and efficiently servicing their portfolios.

[Klaws1000]

Don't panic OP!

I settled on my home 10/10/2014 and my loan has been sent (sold) to Nationstar for servicing.  I too, was somewhat apprehensive but I am pleasantly surprised.  Their web interface is wonderful - far better than my previous mortgage servicer (PHH).  Really easy to set up automatic payments with additional principal payments!  I believe that I will be fine -- so long as I never fall behind.  If that happens, I feel I have far worse problems then who is serving my mortgage and their customer service.

[Peter1142]

It's very easy to read horrible things about just about any company on the web... especially financial companies.

[BungalowMo]

Thank you everyone for all your information and opinions.

It took a while to get to these messages, since the week before Christmas I hit a deer, they totalled my car, had to begin the hunt for another & with anxieties high & resistance low, I came down with bronchitis.  Finally on the mend.

I got the "welcome" email from Nationstar and can sign up on their website on the 23rd.

As far as the BBB goes, I'm guessing the rating came from consumers.  They are not a member.  I do recall several years ago, myFICO (yeah...this site!) had a bad rating thru them, but they also were not a paying member.  We all know how extremely helpful this site is and for the rating to be so low...that was nuts.  Then, they became a paid member adn...you guessed it...they have an A+, IIRC. 

So I will amit, as far as the BBB goes, it's all about the $$. 

I will certainly approach this new servicer with guarded and mediocre faith.  I am never late with my payments & I certainly don't intend to be now, but I do find it rather unnerving that "lates" and "reporting to CRA's" is mentioned in their very first interaction with me.

From their email:

Please pay the amount that was billed on your most recent Chase statement, and write your full Chase loan number on your payment. Unfortunately, we are unable to process any payments made through the Nationstar website until January 23, 2015.

• Starting on January 23, 2015 you will be able to log in at MyNationstar.com to make a one-time online payment or schedule recurring payments. During the first sixty (60) days following the date of your loan transfer Nationstar will NOT charge any late fees or provide negative reporting to any credit reporting agencies. 
  
  
• Register with MyNationstar.com on January 23, 2015 so you can benefit from its many useful features, including online payments, secure messaging and much more. 

 End of email....

If I'm not mistaken, I believe it's the law that they cannot report lates the first couple months.  Someone please verify or correct me, if you have any information.

So...I'm certainly going to do what I can on my end to not give them any reason to go after me in a bad way, I don't need the hassle.  But, I do feel for them if they try to screw me.  I have Aces in my pocket they wouldn't count on.

[StartingOver10]

BungalowMo, I don't want to derail your thread. However, I do want to repond to the post that responded to my post. You have addressed the BBB issue quite clearly. In fact you practicallly took the words out of my mouth about the relationship between a paid membership and the rating issued by the BBB.

I am not a negative Nelly by any means.  However, I have seen many, many foreclosures occur as a result of the servicing and not of the fault of the owner until they literally give up the fight.

Here is a link to a third party site with more credibility than just one individual like me and you can see that there is some game playing among some servicers (usually the low end type like Ocwen and Nationstar). These servicers use under handed tactics to beef up their bottom line to the servicer. Read this for an example: http://www.nolo.com/legal-encyclopedia/abuses-the-mortgage-servicing-industry.html

The most common example I have seen is the servicer fails to pay for the insurance policy (even when the servicer has enough in escrow to make the payment) and then bills the mortgagee for forced placed insurance throwing the consumer into default. Yes, mistakes happen. A good servicer will accept the insurance dec page and change the account showing that insurance is paid and the forced placed insurance is removed. Not all servicers are good. This is a very common method of throwing consumers into default - most especially if the property has equity.

Yes the servicer is paid a flat fee, until the borrower is in default. Then all kinds of servicing fees are added to the account. Read the link.

I am so sorry to hear about your car. I hope you get better and have no issues with either your car insurance or transitioning to Nationstar. 

By the way, you are right, it is a RESPA statute about the 60 days and no late payments to be reported. Read here http://www.hud.gov/offices/hsg/ramh/res/resp2605.cfm

EDIT:  You may or may not want to refinance. In any event, it is very important you keep an eye on Nationstar. Check to see when the payments are applied. Keep detailed records and you may not have to refi. Just be aware that Nationstart is one of the servicers that particpate in some of the practices named in the NOLO link above.

[BungalowMo]

Thanks startingover10....I have decided I will initially pay this through my credit union.  As in forcing the payment TO Nationstar from my checking.  I always had my checking info saved on the chase site & paid from there.

OR...I can open another checking acct with my CU & put money in that acct & add that acct only on their site & pay that way.

My last, but certainly another option if they really try to screw with me, is send every single payment by mail...CMRRR!

If they continue to screw with me, I'll talk to my friends at work.