My loan transferred to/from Northpointe Bank. What does this mean?

Transfers between mortgage servicers are a common practice in the home loan industry.  Some lenders simply do not provide any servicing.  Other servicers buy/sell servicing rights for many reasons.  However, whatever the reason, we understand this may come as a surprise to you as the customer.  Here are the important things to know about servicing transfers:

• None of the terms of your loan are changing.  Your loan amount, interest rate and other terms are contractually locked in.

• Federal loan servicing regulations provide a 60-day window after your "servicing transfer date" in which you cannot be charged a late fee for payments sent to the old servicer nor can you be reported late on your credit report

• The old and new servicers will work together to transfer payments sent to one vs. the other and update any recent loan activity (such as a large principal payment made to the old servicer)

Servicing transfers are a common practice in the industry so we're experienced as both a buyer and seller of servicing.  Depending on the exact circumstance, it may take a few days to resolve a specific question or issue regarding a servicing transfer but you are covered by that 60-day window as noted above.