AmeriSave Loan Sales: What Happens to Your Mortgage and Why

AmeriSave, like many other mortgage lenders, occasionally sells mortgage loans to investors after origination. This is a normal aspect of the mortgage industry and applies to most types of loans, including purchase loans, refinance loans, fixed-rate mortgages, adjustable-rate mortgages, FHA loans, VA loans, USDA loans, home equity loans, and cash-out refinances. 

Selling loans provides lenders like AmeriSave with additional capital to fund new loans. It is not necessarily an indication of any issues with the loan itself or the borrower’s creditworthiness. In most cases, borrowers are not significantly impacted when their mortgage is sold.

Why Do Lenders Sell Mortgage Loans?

There are several key reasons why lenders regularly sell loans to other entities after originating them:

• Liquidity – Selling loans generates capital that the lender can use to fund new loans. This provides them with increased liquidity.
• Risk mitigation – By selling loans off their books, lenders transfer the risk associated with the loans to the new owner. This removes risk from their portfolio.
• Profit – Lenders can generate profits by selling loans above face value, especially when interest rates fall after origination.
• Operational efficiency – Large volumes of loans can be burdensome for lenders to service and administer. Selling them allows lenders to focus on their core competencies.
• Freeing up lending capacity – Selling loans off their books frees up the lender’s balance sheet to originate more new loans.

How Does The Sale Of A Mortgage Loan Affect The Borrower?

When a mortgage lender like AmeriSave sells a loan to another party, the borrower is typically not affected in any significant way:

• The interest rate and key loan terms remain the same.
• The monthly principal and interest payment remains unchanged.
• The timing of monthly payments stays the same.
• Requirements for taxes, insurance, and other escrow items are not altered. 
• The borrower continues making payments to the existing servicer, or starts sending payments to a new servicer if servicing is transferred.
• Prepayment penalties, late fees, and other loan provisions are not impacted.
• Credit reporting continues unchanged, with payments continuing to be reported to credit bureaus under the borrower’s name.

Essentially, the sale of the loan represents a change for the lender, not the borrower. The central aspects of the loan itself remain largely the same from the borrower’s standpoint.

What Happens If Your Loan Is Sold To Another Company?

When a loan is sold, the rights and obligations associated with the loan are legally transferred to the new owner. Here is what typically happens:

• The borrower receives a notification letter indicating that the servicing of their loan has been transferred. 
• The letter provides information on where to send future payments and how to contact the new servicer.
• An external party is almost never made aware that the loan has been sold. The sale occurs behind the scenes between financial institutions. 
• The borrower continues to make monthly principal and interest payments as normal, though possibly to a new servicer.
• Most of the time, automatic payment arrangements and account number details remain unchanged.
• Terms and provisions specified in the original loan documents and notestay in force.
• The new servicer provides payment histories and year-end tax statements going forward.

So in most cases, loan transfers occur seamlessly without disruption from the borrower’s perspective.

What Rights Do You Have When Your Loan Is Sold?

Borrowers have well-defined rights that protect them when their loan is sold or transferred to another servicer:

• Written notification must be sent indicating the loan transfer details and new servicer’s contact information.
• Under the Servicemembers Civil Relief Act (SCRA), active duty military can request interest rate reductions if the loan is sold.
• Servicers cannot charge fees for transferring services associated with the loan.
• The new servicer must honor the existing loan terms and conditions. 
• Servicers must follow consumer protection laws, including the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA).
• Borrowers can still submit Qualified Written Requests (QWRs) to servicers requesting information or corrections on their account. 
• Servicers must continue to provide regular account statements and tax forms to borrowers.
• Borrowers can still submit complaints to the Consumer Financial Protection Bureau (CFPB) related to loan transfers or servicing issues.

Borrowers retain key rights and protections regardless of loan transfers behind the scenes between the lender and new owner.

How Can You Find Out If Your Loan Has Been Sold By Amerisave?

If you originally obtained your mortgage through AmeriSave, here are some options to find out if they sold your loan:

• Carefully review any notifications sent by AmeriSave or a new servicer about a transfer of servicing rights. This usually indicates a loan sale.
• Check the “Mortgage Account Information” section of your credit report, which lists your servicer. A new servicer name likely means your loan was sold.
• Review monthly account statements for any servicer name changes.
• Contact AmeriSave directly and ask if they still own your mortgage or sold it to another entity.
• Contact your servicer and ask who the current owner of your loan is, which will clarify if it was sold.
• Check public mortgage ownership records provided by Fannie Mae or Freddie Mac if your loan is owned by one of those Government-Sponsored Enterprises (GSEs).

What Should You Do If Your Loan Is Sold By Amerisave?

If AmeriSave sells your loan, here are some tips: 

• Read any notification letters thoroughly so you understand who the new owner and servicer are. 
• If loan servicing is being transferred, verify account numbers and due dates with the new servicer to avoid late payments.
• Confirm where future payments should be sent – it may be a new address. Update any automatic payments.
• Check that your tax and insurance escrow accounts were properly transferred.
• If applicable, send a written request under SCRA to the new servicer for an interest rate reduction due to military service.
• Review the new servicer’s account statements and payment histories for accuracy going forward.
• Save records of loan documents, payment receipts, and notifications about the sale for future reference.
• Notify relevant parties (employers, banks, etc.) about account number changes resulting from the transfer.
• Contact the new servicer with any questions or concerns about the loan sale process.

Conclusion

In summary, it is common practice for lenders like AmeriSave to sell loans to investors after originating them. This mortgage loan servicing process generally does not negatively impact borrowers, who retain very similar loan terms and conditions. While loan transfers require some monitoring from borrowers, they typically continue making payments as usual throughout the behind-the-scenes sale process. Understanding the loan sale landscape can help borrowers know what to expect if their AmeriSave mortgage is ever sold to another entity.

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