cancel
Showing results for 
Search instead for 
Did you mean: 

Loan Servicer Transfer

tag
elim
Senior Contributor

Loan Servicer Transfer

For 10 years the DGF has had a mortgage loan with PNC. Today she got a letter stating "The servicing of your mortgage loan is being transfered, The new servicer is Nationstar Mortgage LLC".

 

Does this mean her loan was sold? Will it be a new account on here CR?  Is this lender Ok?

 

Thanks for any info.

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: Loan Servicer Transfer

Yeah that's normal. My loan has been transferred several times and I've never had an issue. Her loan was sold. Everything should remain the same just a different bank to pay. It won't be a new account they'll just update the name servicing it on the credit bureaus.
Message 2 of 6
elim
Senior Contributor

Re: Loan Servicer Transfer


@Anonymous wrote:
Yeah that's normal. My loan has been transferred several times and I've never had an issue. Her loan was sold. Everything should remain the same just a different bank to pay. It won't be a new account they'll just update the name servicing it on the credit bureaus.

   Thanks, I am pretty clueless about mortgages and she really loves PNC. Hates that she can't drive down the street and pay it anymore.

Message 3 of 6
Anonymous
Not applicable

Re: Loan Servicer Transfer

The servicing on my mortgage was transferred to Nationstar Mortgage a couple of months before the loan was paid off in the course of a refinance. I was only with them for a couple of months but their routine customer service was great, very friendly and helpful during the transfer as well as getting the docs I needed in preparation for the refi.  (In particular, the phone reps were generally very helpful.  The secure e-mails via the website were not answered promptly and I wouldn't suggest using this method unless matter wasn't urgent, or you were specifically attempting to establish a paper trail.)

 

Dealing with the intricacies of the mortgage payoff was a different story.  Nothing egregious took place but Nationstar didn't shine here: a lot of incompetence on their part, they wouldn't process the payoff until I wired in extra funds to cover an escrow payment they made at the last minute, and didn't bother informing me of that fact. I ended up paying a few extra days' interest and they actually charged me a late fee for the month since they held the payoff funds in suspense past the 15th (which I am still attempting to contest almost 5 months later... ).  At one point the customer service reps told me that there was no department that dealt with payoffs ... and I'm inclined to believe it based on how disorganized things were!  Still, Nationstar got the main things right: they recorded a "Satisfaction of Mortgage" document in a timely fashion and reported the account as paid in full.

 

(Same story with the intricacies of credit reporting. For some reason they reported my account to the credit bureaus with the notation, "dispute resolved by grantor".  It persisted with TransUnion even after I asked them to delete it, so I had to put in a few requests to Nationstar to delete the notation.  I don't know whether they ever figured out what I was talking about or not, but it eventually disappeared from my TransUnion report.  I did see it again on Credit Karma recently although that might just be Credit Karma...)

 

Short version: friendly customer service in the course of ordinary business, a bit thin on professionalism and expertise when it came to the specialized stuff.

Message 4 of 6
Anonymous
Not applicable

Re: Loan Servicer Transfer

As far as how the transferred account reports to the credit bureaus, it does show as a new account and the old servicers' account(s) are notated as transferred with the status set to "unknown".  So it doesn't count as an extra paid-as-agreed account.

 

Where I believe it could help you is that the "Date Opened" on the new mortgage account is reported as the opening date of the original mortgage, so (as I understand it) it contributes to average age of accounts as though you just opened a 10-year old account.  (Of course, if your average age was already more than 10 years, a new 10-year-old account will lower it a bit.)

Message 5 of 6
elim
Senior Contributor

Re: Loan Servicer Transfer

@Anonymous

 

Thank you so much for sharing your experience. Kudo's for the wonderful, thorough post. The only house I ever owned was a joint with my EX , and sold before the loan was. My now GF isn't really committed to a rebuild like me (us) so, some credit issues arises, she get's upset, ignores the problem or get's dragged through the change (while still being upset) and, well, over and over she stays with 600 Fico's.

 

Reading your post really helped.

 

Thanks again.   

Message 6 of 6
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.