Your Mortgage Has Been Sold: Now What?
As part of the National Affordable Housing Act, Congress added certain provisions to the Real Estate Settlement Procedures Act (RESPA) in 1990:
1. Lenders must disclose to the borrower their policy on assigning or selling loans at the time a borrower applies for a mortgage loan.
2. If a lender assigns, sells or transfers your loan, both your current lender and the mortgage buyer must make certain disclosures.
3. Each disclosure statement must declare that the transfer does not affect any term of the mortgage other than who’s servicing the loan.
4. A 60-day grace period ensures that borrowers can’t be penalized if they mistakenly send payments to the old lender.