Lenders buy and sell mortgages all the time, and Fannie Mae is no exception. Fannie Mae is a government-sponsored organization created by Congress to support the mortgage market. Fannie Mae buys mortgages from existing lenders to add to its mortgage portfolio. These mortgages continue to be managed by the loan servicer, who receives compensation for collecting payments on Fannie Mae's behalf. Most mortgage loans are sold at least once over the life of the loan. You should be notified by letter when your mortgage loan is sold to Fannie Mae.
Mortgage Loan Servicers
Mortgage loan servicers administer the loan to the borrower. They collect payments on behalf of Fannie Mae or the owner of the mortgage loan. In return for collecting payments, managing the escrow and providing customer service, the mortgage servicer gets one percent of the interest rate for the loan. Even though Fannie Mae buys your loan, you might still continue to make payments to your previous lender if they act as the service agent for your mortgage. All this information is outlined in your mortgage sale letter.
Fannie Mae Letters
The National Affordable Housing Act mandates that when a mortgage loan is sold, the borrower be notified by his lender at least 15 days before the next payment is due. As a borrower, you should receive two letters: one from your previous lender and one from Fannie Mae. The letters need to state the name of the new servicer, their contact information and the date your current lender stops accepting payments on their behalf (if applicable).
I Didn't Get a Letter
If you didn’t get Fannie Mae's letter, it might be an oversight on Fannie Mae's behalf. This is not unusual considering that Fannie Mae frequently buys and sells mortgages. The letter might also have been lost in the mail. Use the contact information in your mortgage servicer's letter to contact Fannie Mae and inquire about the status of the letter.
Does Fannie Mae Own My Loan?
Fannie Mae provides a tool on its website that lets you find out if it owns your loan. Enter your street address, city, state and zip code. Fannie Mae searches its database and determines whether or not it owns your loan. You can also call Fannie Mae at 1-800-732-6643 to speak with a customer service representative.
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