Has anyone had their loan sold to Flagstar Bank?

[K-in-Boston]

I got a notice of servicing transfer letter today letting me know that my VA loan is being moved from PHH to Flagstar Bank next month.  My scores have been soaring since I've been gardening as my accounts age and the age of my newest account is longer than it's been in a few years since discovering myFICO.  LOL

I used search and glanced at every mention of Flagstar and didn't find an answer, so hoping someone else has had their mortgage moved to Flagstar and can answer this question.  When the account showed up on your credit reports, which of the following happened?

a.) The lender name and account number of your existing loan were changed to reflect the new servicer.

b.) Your existing loan was listed as closed, and a new entry for the Flagstar loan appeared with the original account's opening date.

c.) Your existing loan was listed as closed, and a new entry for the Flagstar loan appeared with a new account opening date.

Thanks in advance!  Just want to know what to expect with AAoA and AoYA factors as I seem to be in a clean scoring bucket that takes a sizeable hit when my AAoA goes under 8 years.

[Medic981]

I am glad that your scores are improving. I suspect that the account age would not change as it is just being moved. I suspect this as it is what I have read from previous posts about other creditors selling accounts in good standing to a different creditor.

[Anonymous]

I just received the notice today that my loan was transferred. What's this about?

[K-in-Boston]

Mortgages get sold off to be serviced by other lenders all the time; I'm just not familiar with Flagstar.  At least I can already tell their website is substantially better than PHH's.  

@Medic981, two of the three possible scenarios I listed above will negatively impact my files.  "A" would be the ideal scenario and is what has usually happened when credit cards have been moved to a new lender: Lender A account number 12345 just gets completely replaced with Lender B account number 23456.  Scenario "B" would give me an additional account that's only a little over 2 years old, slightly reducing my AAoA (I appear to be in a clean bucket where I take a somewhat significant score dive if my AAoA falls below 8 years).  Scenario "C" would be the worst case as it further reduces my AAoA and also resets my AoYA to 0 months.

[dragontears]

No experience with that specific company but what happened to me when my 2 year old mortgage was sold is "B". I now have 2 mortgage accounts (1 open, 1 closed) with the same open date and original loan amount. It has been about 6 months since this happen and the closed account is still there so I am going to assume it will stay.

[iced]

We currently have a mortgage through PHH. No notice that it's being sold off and checking the portal shows no messages to that effect.

It's a conventional without PMI, if that makes any difference.

[Anonymous]

PHH Mortgage sold their entire company to Flagstar

http://www.mortgagenewsdaily.com/channels/pipelinepress/02282018-gdp-statistics.aspx

[Anonymous]

We only found out in January our hone loan was sold to Flagstar and I do not like it.  We were nver notified by anyone.  We had Chase for our mortgage service lender and they sold us out to Flagstar almost two months ago.  Then Flagstar told us they sent us 3 notices that they had our loan but we have recerived none.  I think something is fishy here and they (Flagstar) are purchasing loans for a specific reason and I will not state that reason only because I have no proof yet but I am stil checking.  The reviews of Flagstar are not good so watch out.  Something smells real fishy about all this and I am very spprehensive of what might be going to happen with the housing market.  I am not happy about any of it and so far am getting no answers until I dig deeper. We will try to either refinance or cash out.   Go with your gut on this one but just be careful.

[Anonymous]

Your guess is as good as mine but they have told people to tell customers that banks sold off a lot of their current mortgages to make room for new mortgages. I somehow find that very scary.  Ours was sold out without notification one day after the last payment.  Something smells bad about this and I do not like it.  The reviews of Flagstar are not good.  Either we are gonna sell or refinance and get away from them.  I was on the phone for over 4 hours this morning trying to talk to them and finally hung up while waiting.  None of their employees have employee numbers but only a name and say "I am the only one here with that name"??  I am apprehensive about this and already want away from this mortgage buyout.  Also Flagstar Bank has bought out hundreds of Wells Fargo branches and people are really upset about that too.  My gut tells me this is not too good.  I hope I am wrong.

[K-in-Boston]

So far the change has been fine for me.  To answer my own question in the original post, B.  My mortgage from PHH was marked as closed and paid, then it took nearly 2 months for the Flagstar account to begin reporting (with an open date equal to the existing loan).  Took a score hit for a while due to lack of open mortgage.

@Anonymous regardless of what happens with the market, as long as you're in a fixed rate loan and remain current with payments the changes shouldn't affect your mortgage at all.  Is this your primary residence and is the mailing address they have on file for you the same as the home?  I received 2 or 3 letters from Flagstar before PHH notified me of the transfer, and I've received several other letters from them since including a privacy notice just this week.