Score drop after mortgage transfer

[gurusexy]

BofA sells my mortgage and servicing rights to another entity, mortgage now reports as zero, score drops across all three bureaus. What have I dont to these people eh? :-(

[takeshi74]

Relax and let the dust settle.  It's typical to see a reduction in score due to a closed/paid installment.  However, if it's transferred then you'll still have a mortgage reporting in the end.  AAoA will be reduced from the new account.  However, it's tricky to say what the net effect will be as it depends on your credit profile.  

How many points are you talking about?  I'd advice not obsessing over anything less than 20 to begin with.  Also, scoring models vary so I don't recommend fixating on specific numbers anyway.  Focus on the data in your reports.  Good reports will lead to good scores.

[MarineVietVet]

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@gurusexy wrote:

BofA sells my mortgage and servicing rights to another entity, mortgage now reports as zero, score drops across all three bureaus. What have I dont to these people eh? :-(

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No worries. I've had several mortgage notes sold over the years and everything settled down to normalcy.

Give it a few months. You'll be fine.

[Anonymous]

B of A recently sold my mortgage also. The account as of recent shows closed with 0 balance. The new company servicing my mortgage has not yet reported to the big 3 although I have already made a payment to them. I am curious to see how this plays with my scores in the next 2 or 3 months. When the account updated as closed, my scores dropped 22 points. Hopefully this will go back up the. Thing are reported by the new loan servicing company. To some, 22 points may not seem like a big deal. To me, a person rebuilding and fighting for every point, it is very frustrating, especially when the drop is no fault of your own. In my opinion, if your mortgage is current and then gets sold, you should not be penalized. This is a transfer not a refi..... What a crock!