Loan Sold/Transferred

[sillykitty1]

I refi'd from an FHA loan into a conventional earlier this year.  That loan was quickly sold to Fannie Mae.  Then the servicing of the loan was sold.  No biggie I thought ... until the original loan is showing closed/transferred on my CR's.  I assume the new servicer will soon start reporting, which will affect my AAOA.  I know it's normal for servicing of loans to be sold, but it seems unfair that I am negatively impacted by an AAOA decrease.  I assume this is normal and nothing I can do about it?

[StartingOver10]

Yes, completely normal. Nope, can't do anything about how the TL reports unless it is incorrect.

[sillykitty1]

That's what I thought ... thanks for the reply

[TheGardner]

I have never had a home loan sold so forgive me, what date will the new reporting show? Original open date? Or date it was acquired?

[Anonymous]

My Loan was sold/transferred as well and my scores have dropped.  I am so annoyed.  We were hoping to purchase a new home in the next couple months and I am not happy about this drop.  

Someone please let me know if there is something I can do.

[ezdriver]

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@Anonymous wrote:

My Loan was sold/transferred as well and my scores have dropped.  I am so annoyed.  We were hoping to purchase a new home in the next couple months and I am not happy about this drop.  

Someone please let me know if there is something I can do.

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When a loan is sold/transferred to another party, that represents a TRADELINE LOSS for the borrower ... unitl the new owner starts to report at which time you will have a TRADELINE ADDITION which will offset the "loss". Unfortunately, if the payment history and original date are not reported, a loss of score points is likely. I can't think of anything that a borrower can do about that unless the new owner can be convinced to report payment history...a very unlikely outcome for sure.

[Peter1142]

The new tradeline should show the original open date of the mortgage (though won't double the payment history). The new TL will have all the same data, balance/loan amount etc. If it does not you can dispute this. So the only way this hurts your score is for AAoA, only if the mortgage is still new, and will count as a second new account if the mortgage was opened less than a year ago. When they are both old TL's your AAoA will get a bonus instead.