What to do if your mortgage is sold to another lender

The practice is very common, and such transfers normally take place without a hitch. But you need to make sure the rightful loan servicer receives your payments.

Reporting from Washington - It's the mortgage market's equivalent of a Dear John letter: "Goodbye. We've sold your loan to another lender."Some borrowers receive the missive a few days after they close on their loans. Sometimes it arrives years later. But over the life of the mortgage, practically every homeowner is sure to receive one. The loan may be sold two, three or even four times to other lenders.In mortgage-industry parlance, it's called a "transfer of servicing." But although some borrowers may take the notice as a personal affront, it's really nothing to fret about."People shouldn't take it personally," said Alan Jones, senior vice president for servicing at Wells Fargo Home Mortgage in Des Moines. "It doesn't have anything to do with anything they have done. It's a standard business practice."Wells Fargo is one of the few lenders that rarely transfers the servicing rights to the loans it originates. Otherwise, the practice is very common. Full story!!

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