Mortgage Sold? Here's What it Means for You as the Borrower

You closed on your mortgage, everything felt settled, and then a new email or letter showed up. It says your loan was sold and your payments will now go to a different company.

If that moment gave you pause, you’re not alone.

In the U.S. mortgage industry, it is very common for a lender to sell a loan after it is originated. Many lenders do this as a normal part of how their business operates, primarily to free up capital so they can originate more loans and continue lending at scale. So if your loan was sold shortly after closing, it does not signal a problem. It is a standard step that happens behind the scenes every day.

Still, it is natural to wonder what this means for you. Will your loan terms change? Will the service be different? Does this affect your ability to refinance or sell the property later? This article walks through what it actually means when a loan is sold, why lenders do it, and what changes and what does not from a borrower’s perspective. By the end, you will know exactly what to expect and how to move forward with confidence.

Key takeaways

• Loan transfers are normal and routine. Selling or transferring your mortgage to a new servicer is standard practice in the U.S. and does not indicate any problem with your loan.

• Your loan terms remain unchanged. Interest rate, payment schedule, escrow accounts, and other original terms stay intact, and the transfer is purely administrative.

• Minimal action is required from you. Follow simple steps like updating ACH payments and accessing the new servicer’s portal, while the rest happens behind the scenes.

Why did my mortgage get sold or transferred?

It can be surprising to see a notice that your mortgage has been sold or that your payments will now go to a new company. If that happened to you, rest assured this is completely normal. In the U.S., it’s standard practice for lenders to transfer loan servicing after a loan is originated. This happens with all types of loans, not just specific ones involving foreign nationals or rental property loans.

The main reason lenders do this is to focus on originating new loans while partnering with institutions that specialize in servicing. Servicers are equipped to handle the day-to-day management of your loan, including payments, record-keeping, and escrow accounts, ensuring everything runs smoothly. This allows Waltz to continue offering competitive financing options to future borrowers.

Read more: Offer Accepted? Here's What Happens Before Closing

Will my loan terms change?

While the company managing your loan may be different, your loan itself stays exactly the same. Here’s what you need to know:

• Loan terms: All other terms, conditions, and agreements from your original loan stay intact.
  
  
• Escrow accounts: Taxes, insurance, and any prepaid funds continue to be managed from escrow.
  
  
• Interest rate and payment schedule: Your rate and due dates remain unchanged.
  ‍

The bottom line? Changing your loan servicer does not impact your rights or obligations. Your loan terms remain fully intact, and the transfer is entirely administrative.
‍

Pro tip: Confirm that any automatic payments are updated with the new servicer to avoid interruptions. 

What steps do I need to take?

When your loan is transferred to a new servicer, the process is designed to be mostly seamless. In most cases, there is very little you need to do to ensure everything continues smoothly. Follow these simple steps:

‍
1. Sign the ACH form: If the new servicer requires an ACH on their own form, we’ll send it to you along with your goodbye letter so your monthly payments continue to be drafted automatically. If the new servicer accepts the ACH authorization you originally signed at closing, no new form is needed.

‍
2. Access the loan portal: Once your account is activated, log in to view statements, escrow details, or other information. If you’re outside the U.S., you may need a VPN to access the portal.

‍
3. Confirm set up: Ensure your automatic payments and portal access are working, then you can continue as usual.

Following these steps helps ensure your payments and records remain uninterrupted.

‍
Pro tip: Double-check that you have full access to the loan portal and escrow information so you can easily monitor your mortgage if needed.

How will escrow accounts be handled?

Escrow accounts are separate accounts the servicer maintains to ensure your taxes and insurance are paid on time. Even though the servicer changes, the funds are carefully tracked and your obligations remain the same. 

The new servicer will handle all calculations and payments just as your previous servicer did. Any prepaid amounts you have already contributed, as well as ongoing monthly contributions, will continue without interruption. You don’t need to take any action on this front unless specifically noted by the new provider.

‍
Pro tip: Once your new account is active, log in to the servicer’s portal to confirm your escrow balance and upcoming payments. This gives you full visibility and peace of mind.

Who should I contact for questions?

Once your loan is transferred, your new service provider becomes the main point of contact for everything related to that mortgage. This includes processing payments, managing escrow accounts, providing account statements, and supporting your use of the loan portal. After the transfer is complete, day-to-day servicing questions should be directed to the new provider.

What you can expect going forward:
‍

• Smooth transition of payments and records to the new servicer.
  ‍

• Access to the new servicer’s portal for statements and account information.
  ‍

• While the loan will be serviced by another company, Waltz can help facilitate new loans and refinances.
  ‍

• Minimal interruptions and full transparency throughout the process.
  ‍

Pro tip: Keep contact information for both Waltz and your new servicer. Direct servicing inquiries to the new provider and keep Waltz in mind for future mortgage inquiries. 

Stay in control through the transition

Loan sales and servicing transfers are a normal part of a healthy, scalable mortgage system and do not reflect any issues with your loan. These changes are routine, secure, and designed to ensure your mortgage is professionally managed at every step. By understanding how the process works, you can focus on your loan goals with confidence, knowing your payments, records, and escrow are handled correctly. 

‍