Mortgage loan getting transferred to another company

[TiMSport]

So I just discovered that my existing mortgage loan was transferred to a different company by way of a letter sent to me from my current bank (BofA). It states my loan will be serviced through a company now known as "Mr. Cooper". WTF kind of name is that?!? It seems they used to be known as Nationstar Mortgage LLC. I thought this was a scam at first when reading it because I simply couldn't believe a company would change their name to something as moronic as Mr. Cooper.

Has anyone experienced anything like this? Oh and I received the letter today and the transfer takes place from November 2nd. Talk about a last minute notification.

[Reborn_]

When I refinanced, I knew they were not going to service my loan. After 1-2 payments, they sold it to another company. I googled them and they checked out ok (and it's been a couple of years) but it also felt questionable with the documentation sent to me about the transfer. I was also on alert for scams.

That said, I agree, Mr. Cooper is a silly ass name, so I would keep digging into it (and call BofA to confirm).

[TiMSport]

Originally Posted by Reborn_

When I refinanced, I knew they were not going to service my loan. After 1-2 payments, they sold it to another company. I googled them and they checked out ok (and it's been a couple of years) but it also felt questionable with the documentation sent to me about the transfer. I was also on alert for scams.

That said, I agree, Mr. Cooper is a silly ass name, so I would keep digging into it (and call BofA to confirm).

The problem I have with this is that there is absolutely no mention of this when looking at my current bank's online account. You would think there would be a notification provided online in addition to a letter sent via regular mail service. I actually almost tossed this without even looking at the content because it looks like any other junk mail I get on a daily basis. I'm glad I actually opened it!

Thanks for letting me know you went through something similar. I'm bummed because I've been with BofA for many years and have my other accounts through them so it was very convenient. I will probably give them a call and confirm all of this.

[squareforce]

A month after we closed on our house it changed to phh mortgage. I too thought it was a scam until my boss said that it's happened to him with every house purchase he did.

Luckily at the time I got an email from the loan consultant from my builder saying my loan will be transferred. And I got I think an email that my account was ready to login

But now I keep getting letters and emails saying I can lower my interest rate or cash out refinance. When I actually called they said my interest rate was already at the lowest…

[Reborn_]

Originally Posted by TiMSport

The problem I have with this is that there is absolutely no mention of this when looking at my current bank's online account. You would think there would be a notification provided online in addition to a letter sent via regular mail service. I actually almost tossed this without even looking at the content because it looks like any other junk mail I get on a daily basis. I'm glad I actually opened it!

Thanks for letting me know you went through something similar. I'm bummed because I've been with BofA for many years and have my other accounts through them so it was very convenient. I will probably give them a call and confirm all of this.

I remember the original refinance bank showed active for a while, as did BofA (which was where my original mortgage lived, until I refi'd). It bugged me but eventually both showed me closed out.

Call BofA to confirm for piece of mind.

[fiveohwblow]

Mr cooper is indeed real as my mortgage is through them. I also had one of my top employees leave me to go work for them selling mortgages. Have no fear, they are the real deal. They bought mine too fwiw about 2-3 years ago.

[bosstones]

Originally Posted by fiveohwblow

Mr cooper is indeed real as my mortgage is through them. I also had one of my top employees leave me to go work for them selling mortgages. Have no fear, they are the real deal. They bought mine too fwiw about 2-3 years ago.

+1. Mr Cooper is real/legit and I don't disagree about the name. When I had my townhouse, I refi'd thru Nationstar and it later went to Mr Cooper. I didn't have any issues with them.

[TiMSport]

Thanks everyone for confirming Mr. Cooper's legitimacy. That name though...

[VJE90]

My mortgage was also transferred to Mr. Cooper early this year and they failed to setup the escrow (even though they received the money). It took a couple of phone calls to get that fixed and now it looks like its going to take a few more phone calls because the failed to pay the property taxes on time. Keep an eye on your account.

[TiMSport]

Originally Posted by VJE90

My mortgage was also transferred to Mr. Cooper early this year and they failed to setup the escrow (even though they received the money). It took a couple of phone calls to get that fixed and now it looks like its going to take a few more phone calls because the failed to pay the property taxes on time. Keep an eye on your account.

THIS kind of stuff is what I'm concerned about! Having everything through the same bank I never had to worry about anything. Thanks for the heads up on that.

[Alfisti]

Your entire banking system down there is amazing, how you've let it get so complicated is beyond me, really is.

[zx10guy]

I don't profess to know all the ins and outs with mortgage investments. But selling off of mortgages is very common. It's been happening for decades. From what I understand mortgages can be grouped into securities which are then sold off as a bundle to other investors or financial institutions. Of all the mortgages I've held, the one that seems to stay put is the one I got through a credit union.

As far as stupid names goes, yes, Mr. Cooper is pretty bad along with Chubb. Every time I hear that company's name, I keep thinking of some some dude over there having wood.

[vreihen16]

Let me give you some friendly advice...refinance NOW to get away from NationScum!!!

BoA was losing money on the terms of our pre-bubble-pop mortgage, and sold it off to NationScum with about the same notice period. If you go and read their reviews around the web, they seem to be in business to prey on people with bad credit by charging crazy fees and destroying people's credit even more. I kid you not, they charged a fee for making online payments, charged a fee if your mail-in payment was one day late, didn't mail out monthly bills until there was no way that you could mail them back without being late, and even charged us $150 for a mortgage payoff letter to refinance away from them after one month.

Fortunately for us, I saw the reviews online and started the refi process with our credit union before the loan had transferred. Having an 800+ credit score saved us from a likely financial disaster. We had to pay the $150 for the payoff letter and one month's mortgage payment to them before our credit union could close the refi, which I still to this day look at as money well spent.

Our original pre-bubble-pop mortgage that NationScum bought was a 30-year 5/1 ARM, written with very bad terms for the lender with no adjustment floor limit and a 0.5% annual ceiling limit. (They didn't foresee the bubble popping.) When the first adjustment hit as the bubble popped, the rate for the next year dropped to might-as-well-been zero percent. With the 0.5% ceiling cap, it would have taken BoA 6 years to get our rate back up above 3%. Hence, them selling the loan to a company who specializes in milking fees and destroying credit. We had to give up our 1.5% ARM and go to a 2.75% 15-year fixed with our credit union when we did the refi, and would do it again.

Why are you still reading this and not shopping for a refi?!?!?!?!?

[dscabra]

Recommendation: Finance your mortgage with Wells Fargo. They will service the mortgage for the life of it.

[6oclockshadow]

Originally Posted by Alfisti

Your entire banking system down there is amazing, how you've let it get so complicated is beyond me, really is.

This is a very common practice--mortgages are asset-backed securities, that are bought and sold as such by investors. It's stated clearly in the application process, and it happens up there too with the same frequency. Non conforming loans are not sold, and typically offered through small local banks and credit unions.

[TiMSport]

Originally Posted by zx10guy

I don't profess to know all the ins and outs with mortgage investments. But selling off of mortgages is very common. It's been happening for decades. From what I understand mortgages can be grouped into securities which are then sold off as a bundle to other investors or financial institutions. Of all the mortgages I've held, the one that seems to stay put is the one I got through a credit union.

As far as stupid names goes, yes, Mr. Cooper is pretty bad along with Chubb. Every time I hear that company's name, I keep thinking of some some dude over there having wood.

Lol. It could be worse with a name like "Mr. Cooper's Chubb".

[TiMSport]

Originally Posted by dscabra

Recommendation: Finance your mortgage with Wells Fargo. They will service the mortgage for the life of it.

I don't want to refinance if that's what you're suggesting. I've done it once already.

[TiMSport]

Originally Posted by vreihen16

Let me give you some friendly advice...refinance NOW to get away from NationScum!!!

BoA was losing money on the terms of our pre-bubble-pop mortgage, and sold it off to NationScum with about the same notice period. If you go and read their reviews around the web, they seem to be in business to prey on people with bad credit by charging crazy fees and destroying people's credit even more. I kid you not, they charged a fee for making online payments, charged a fee if your mail-in payment was one day late, didn't mail out monthly bills until there was no way that you could mail them back without being late, and even charged us $150 for a mortgage payoff letter to refinance away from them after one month.

Fortunately for us, I saw the reviews online and started the refi process with our credit union before the loan had transferred. Having an 800+ credit score saved us from a likely financial disaster. We had to pay the $150 for the payoff letter and one month's mortgage payment to them before our credit union could close the refi, which I still to this day look at as money well spent.

Our original pre-bubble-pop mortgage that NationScum bought was a 30-year 5/1 ARM, written with very bad terms for the lender with no adjustment floor limit and a 0.5% annual ceiling limit. (They didn't foresee the bubble popping.) When the first adjustment hit as the bubble popped, the rate for the next year dropped to might-as-well-been zero percent. With the 0.5% ceiling cap, it would have taken BoA 6 years to get our rate back up above 3%. Hence, them selling the loan to a company who specializes in milking fees and destroying credit. We had to give up our 1.5% ARM and go to a 2.75% 15-year fixed with our credit union when we did the refi, and would do it again.

Why are you still reading this and not shopping for a refi?!?!?!?!?

Coincidentally I just read in the news yesterday about these guys having to pay a $91.3 million lawsuit. I'll see how this goes at first and if they try to charge money for payments online I'll certainly take measures.

Headlines read like this:

"Mr. Cooper will pay a total of $91.3 million to settle allegations by 51 state attorneys general and the Consumer Financial Protection Bureau over servicing violations since 2014."

https://www.housingwire.com/articles...-foreclosures/

[fiveohwblow]

We've paid online from the jump, never had issues with fees. They've a grace period of like 10 days or some shit. Only one time were we late by accident and they reversed the fee. Guessing there's a reason they changed their name….

[kanovic]

Every house we bought our loan gets sold. Moved in this house in July and by end of august it was sold already. I think it’s very common.

[Alfisti]

Originally Posted by 6oclockshadow

This is a very common practice--mortgages are asset-backed securities, that are bought and sold as such by investors. It's stated clearly in the application process, and it happens up there too with the same frequency. Non conforming loans are not sold, and typically offered through small local banks and credit unions.

Oh I know it is common, doesn't make it right. Talk about complicating the simple.

[wtwo3]

Mr. Cooper is offended by this thread