Who Really Owns Your Home Loan?

Are you aware of the differences between a lender, loan holder and loan servicer? Your lender is the bank or lending institution from which you originally borrowed money. Your lender may keep your loan or sell it, usually as part of a package of many loans. Your loan may be sold many times during the loan period.

The loan holder currently owns your loan. Lenders and loan holders often hire another party to service your loan. The servicer sends out statements, collects your payments, answers your questions and processes your requests such as postponing payments, forbearance or canceling the loan. Your lender or loan holder may choose to service the loans they own in which case they are also the servicer.

Your monthly statement comes from your servicer, but you may not know the identity of your current loan holder. Some servicers are very responsive to questions and requests for information. Others are not. You need to know who owns your loan if you are considering a short sale or want to renegotiate terms, or are having serious problems getting questions answered or requests considered working through your servicer.

By Robert Hawkinson