Your loan was not re-sold to BofA.
The SERVICING is being done by BofA.
They will collect payments and handle statements.
Your loan will be sold off in a MBS(Mortgage Backed Security) you will never know who OWNS your loan.
I have tried explaining this before…
Banks have divisons that are MORTGAGE BROKERS. They do not lend their money out for 30 years and own your loan. They may have lines to fund the loan. Completely separately from the servicing department. F/F buy the loan from the originator.
Banks have separate divisions. One does servicing of loans. Another is a credit card division, another is the branch that you walk into, etc.
People want to know why the “BANK” cant modify their loan.
The BANK doesn’t own the loan, they service it.
You probably got a better deal than if you had gone to BofA directly.
The retail rates at the bank are high.
Loans are sold off in mortgage backed securities via Fannie, Freddie, FHA, VA etc.
The company that you send payments to does not “own” your loan.
Many banks recently have had horrible rates. Some are taking 60-90 days to close loans. So many foolish people go to banks thinking they are getting a free loan, so banks take advantage of the ignorance. Banks/direct lenders do not have to disclose the same information that brokers do.
A loophole to fool consumers.
Fannie-Freddie-FHA-VA make the rules and guidelines. People think that because they have had an account at a bank for the last 100 years they are going to get special treatment. (They usually get screwed instead)
A new loan is a new loan. Suckers are having loans modified to delay foreclosures.
If you have equity, it’s not likely that a loan will get modified.
There are exceptions but hopefully you get the idea.
It’s ignorance when people say that banks always have better rates than mortgage brokers, but it’s what plenty of people believe.
