The following blog article is from E. R. Munro and Company’s quarterly newsletter, I.Q. If you would like a free subscription to I.Q., please send an email to: [email protected] and include your name and home or business address. We do not sell addresses to third parties.
If your mortgage is sold
Lenders sell mortgages to other lenders fairly often. If your mortgage is sold, what should you do?
Call your new lender to make sure they have all your correct information. Check to make sure your escrow life or disability insurance from your previous mortgage was transferred to the new loan, if you had these policies in effect with the former lender.
It’s important to double-check with your new lender to make sure your mortgage insurance coverage is still sufficient.
E. R. Munro Customer Service Representative Nadine Weilersbacher said that sometimes lenders do not notify the insurance agency when a mortgage has been sold, there is a new lender or that the address of the loan company has changed.
“We either get a return mail from the carrier, or the insured gets a letter saying they are not insured,” said Nadine. “If the policy is mortgagee-billed, the premium does not get paid and a late notice goes out to the homeowner. The worst case scenario is that the insurance policy cancels.”
