Who Owns My Loan?
A common question we hear from homeowners is “who owns my loan?”. While this initially might seem like a simple question (“the bank that originated my loan owns it!”), it’s actually a bit more complicated. During the loan origination process, a borrower applies for a new loan and the lender processes that application. Once originated, loans can be purchased by other lenders or by the government-sponsored entities (GSEs) Fannie Mae and Freddie Mac. Even more confusing, the company that you make payments to on a monthly basis, known as the servicer, is not necessarily the owner of your loan.
Why does this matter, anyway? Finding out who owns your loan becomes especially important when you realize you may be in danger of falling behind on your mortgage. The owner of your loan is the only entity that can agree to a mortgage modification, refinance, or other form of mortgage relief. And various government mortgage relief programs are often specific to the owner of your loan – for example, the Making Home Affordable modification and refinance programs are specific to loans that are owned by Fannie Mae and Freddie Mac. Similarly, the recently announced Streamlined Modification Program is available only to homeowners with Fannie Mae- and Freddie Mac-backed loans.
So how do you find out who owns your loan? That part is actually quite simple. Our housing counselors, who are available by calling 888-995-HOPE (4673), have the expertise and tools to help you determine who owns your loan. Counselors can then use their direct relationships within many lenders’ loss mitigation departments to initiate a three-way conference call between you and your lender to discuss the most appropriate solutions to your mortgage issue.
Also, if you’d like to quickly find out if either Fannie Mae or Freddie Mac owns your loan, both organizations offer the following loan look-up tools:
- Fannie Mae loan look-up: https://knowyouroptions.com/loanlookup
- Freddie Mac loan look-up: https://ww3.freddiemac.com/corporate/