Bank of America sold my mortgage to a company known for shady practices.

[Slacker]

Update 04/29/2013, refinanced with quicken loans, got 3.75% down from 5.75% took nothing out so payments are lower.

Quicken was so easy to deal with, it was all done online and they sent a notary to my house with the paperwork.

I do wonder what the effect was on nationstar, they bought my loan and I had already started the refi before it was transfered to them, I made 2 payments to them, one of which should be refunded to me, so they bought a loan and serviced it for 1 payment before it was paid off, did they make, break or lose on that deal?


******************************************************


BoA sold my mortgage to nationstar, Google them and you will see what I saw, hundreds of people talking about being screwed by this mortgage company.

I already have a contact at quicken loans because I have been considering a refi, so now I am stuck dealing with nationstar until I can get a new loan.

Dreading the next couple of months, is there anything I can do?

If you read the complaints you will see people saying they get late charges for payments mailed on time but posted late, and charges for insurance they already have as well as escrow taxes shenanigans.

Looks like my only option is to refi as soon as possible.

 

[postmortemIA]

capable banks can refi within a month.

but in reality 90% of mortgages belong to fannie mae and freddie mac, so mortgage providers are only servicing loans.

 

[wirednuts]

i hate mortgages so much. nothing has really changed either, besides it being harder to get one. thing is, once you do, its still the same sub primed piece of crap it used to be pre-08. im beginning to hate all loans of any type.

 

[RaistlinZ]

Who still mails in mortgage payments? Why risk it getting lost/delayed in the mail? Can you pay online with Nationstar?

 

[Slacker]

I've never written a check for this mortgage in the 16 years and I've lived here always had direct debit, but from what I have read I don't want this company in my bank account.

Waiting for their welcome package to see what payment options they use.

 

[DCal430]

BoA sold my mortgage to nationstar, Google them and you will see what I saw, hundreds of people talking about being screwed by this mortgage company.

I already have a contact at quicken loans because I have been considering a refi, so now I am stuck dealing with nationstar until I can get a new loan.

Dreading the next couple of months, is there anything I can do?

If you read the complaints you will see people saying they get late charges for payments mailed on time but posted late, and charges for insurance they already have as well as escrow taxes shenanigans.

Looks like my only option is to refi as soon as possible.

FYI your loan is owned by the federal government, BofA only sold the right to service your loans, NationalStar is an approved servicer of federal owned loans. This is an important difference.

 

[Vdubchaos]

a) go with a reputable bank that won't sell your loan (read: not a big dog)
b) don't use a broker

 

[DCal430]

a) go with a reputable bank that won't sell your loan (read: not a big dog)
b) don't use a broker

The vast majority of loans are sold, in fact most are sold to the federal government.

 

[OCGuy]

a) go with a reputable bank that won't sell your loan (read: not a big dog)
b) don't use a broker

Yes, listen to this man. Actually, don't, he has no idea what he is talking about.

OP I have troubles with Nationstar in my industry, but it is usually that they are just slow on getting me the payoff demand.

Make your payment on time and they have no reason to mess with you. They have to stick to the Note, just like you do.

 

[zanejohnson]

man the world of refi is craziness... thank you God for allowing me to miss that in this life..

 

[Red Squirrel]

I never understood this "bank selling a mortgage" thing. Is that even legal? Seems really sketchy to me, yet I hear about it fairly often. Do the mortgage holders at least have the option to bail out early and move elsewhere? What happens with the interest rate, payment plan and other agreed upon stuff when this happens?

 

[UglyCasanova]

I never understood this "bank selling a mortgage" thing. Is that even legal? Seems really sketchy to me, yet I hear about it fairly often. Do the mortgage holders at least have the option to bail out early and move elsewhere? What happens with the interest rate, payment plan and other agreed upon stuff when this happens?

No you can't bail out if (when) this happens and nothing at all happens to the payment, interest ate, etc. The secondary market allows you to recieve a mortgage a a somewhat reasonable price by allowing lenders to sell it off for a profit, recoup those funds, and then use them to lend again. As we've seen this can have consequences ( not all good) on different aspects of the lending process not least of which being underwriting standards.

 

[Slacker]

Read some of these.

http://www.consumeraffairs.com/finance/nationstar_mortgage.html

 

[NoStateofMind]

Yes, listen to this man. Actually, don't, he has no idea what he is talking about.

OP I have troubles with Nationstar in my industry, but it is usually that they are just slow on getting me the payoff demand.

Make your payment on time and they have no reason to mess with you. They have to stick to the Note, just like you do.

this.

 

[DCal430]

I never understood this "bank selling a mortgage" thing. Is that even legal? Seems really sketchy to me, yet I hear about it fairly often. Do the mortgage holders at least have the option to bail out early and move elsewhere? What happens with the interest rate, payment plan and other agreed upon stuff when this happens?

The majority of conforming loans are simply sold to the federal government either to FNMA, FHLMC, or to GNMA. In exchange they will receive a guarantee security which mimics the payment stream of the group of mortgages. I believe something like 80% of all mortgages as held by these government entities. In the case of the op only his servicing right has been sold, his mortgage is still held by one these GSE.

 

[runzwithsizorz]

Yes, listen to this man. Actually, don't, he has no idea what he is talking about.

OP I have troubles with Nationstar in my industry, but it is usually that they are just slow on getting me the payoff demand.

Make your payment on time and they have no reason to mess with you. They have to stick to the Note, just like you do.

Years ago our note was sold, didn't think much about it, and had auto payment set up. Took us months to notice that an extra $20 was tacked
on to our payments for some off shore shopping network kinda thing.
There was a class action lawsuit filed, but, well---------------

 

[EagleKeeper]

I've never written a check for this mortgage in the 16 years and I've lived here always had direct debit, but from what I have read I don't want this company in my bank account.

Waiting for their welcome package to see what payment options they use.

If your bank does not have electronic payment set up with National, then the bank can cut a paper check. Just schedule/request it 3 days before the drop dead date. Your bank will send it to them and cover hassles if not posted afterwards on time.

Many shady operators will not post until the clearing time elapses, creating a mini float. When it is a bank check, that float time is negated.

 

[GagHalfrunt]

I never understood this "bank selling a mortgage" thing. Is that even legal?

If it wasn't legal the world would not be in such a financial crisis. Banks writing bad loans and then selling the debt to 3rd parties as "investments" is what caused the meltdown. Everyone was up to their ears in bonds created off shaky loans packaged together and when those loans started defaulting en masse it rippled across the globe. If banks were responsible for their own loans they'd have to be a lot more careful about the mortgages they write, only decent risks would have gotten them in the first place and there would not have been any trouble. In retrospect it SHOULDN'T be legal, but it is.

 

[T9D]

Read some of these.

http://www.consumeraffairs.com/finance/nationstar_mortgage.html

You know I read a lot of those. And it's the same story. It's usually pissed off people who were late with their payments. A lot of people trying to mod their loan, refinance, etc. But they don't get approved and get super angry. And getting mad because this new company doesn't let them get away with crap like their old mortgage company would

I read one guy getting pissed because he is allowed to pay between the 1st and 16th. Anything after the 16th is late. Well he SENDS the payment every month ON the 16th. Then gets hit with a late fee.

One person stopped making payments an entire year before because he lost his job and is pissed about something or other about this company deals with him.

Another tried to mod a loan and was 4 months behind while he attempted that loan mod. He got hit with hurricane Sandy damage and the mortgage company applied his insurance check to his mortgages past payment dues. So he was super pissed off. Well don't be 4 months behind!

Reading between the lines and putting some things together that the complainers are obviously leaving out you can see why they are having problems.

What I'm gathering is that normal banks are selling to this company when the loan or client is not favorable anymore. When they want to mod or refinance but won't qualify or it will greatly put the loan more at risk. Or it's obvious the home owner may be in trouble financially and default is at risk.

Basically you have a huge pool of the highest risk home owners that were sold off to this company. I see a lot of people with HUGE entitlement issues and their last bank let them get away with crap or let them off easy. But this new company won't have it and brings down the Gauntlet.

With that being said this company definitely gives them the run around and makes them pay for it. And are definitely difficult or even shady. But the people seemed to end up there and were sold off by their last mortgage company for a reason.

 

[LegendKiller]

If it wasn't legal the world would not be in such a financial crisis. Banks writing bad loans and then selling the debt to 3rd parties as "investments" is what caused the meltdown. Everyone was up to their ears in bonds created off shaky loans packaged together and when those loans started defaulting en masse it rippled across the globe. If banks were responsible for their own loans they'd have to be a lot more careful about the mortgages they write, only decent risks would have gotten them in the first place and there would not have been any trouble. In retrospect it SHOULDN'T be legal, but it is.

Securitization of mortgages has been around for 40 years. In the 30 years prior there wasn't any major issues with RMBS/CMOs. As with anything it is a tool, any tool can be used properly or abused improperly. Just because the tool is abused doesn't mean it is a bad tool, it just means the people wielding it used it in correctly. You have to take a look and see whether it will be abused in the future and whether it can be trusted to be used in the future. This tool has many decades of proper use, there is no reason at all to get rid of it.

Furthermore, even before securitization, banks bought and sold whole loans or portfolios of whole loans. The selling of debts has been occurring since the first time somebody borrowed money.

 

[GagHalfrunt]

Securitization of mortgages has been around for 40 years. In the 30 years prior there wasn't any major issues with RMBS/CMOs. As with anything it is a tool, any tool can be used properly or abused improperly. Just because the tool is abused doesn't mean it is a bad tool, it just means the people wielding it used it in correctly. You have to take a look and see whether it will be abused in the future and whether it can be trusted to be used in the future. This tool has many decades of proper use, there is no reason at all to get rid of it.

Furthermore, even before securitization, banks bought and sold whole loans or portfolios of whole loans. The selling of debts has been occurring since the first time somebody borrowed money.

The guys packaging securities off of sub-prime mortgages were completely within the law (for the most part, not counting rare instances of insider dealing obviously) and the people further carving them up into other types of securities were doing it legally. If the tool can be abused to the degree that it trashes the economy of almost the entire planet while not breaking any laws then it's a BAD TOOL. How on earth can you debate the opposite view?

And in the years prior to the meltdown Glass-Steagall was in place which would have minimized the damage if the securities were abused. It also limited the amount of money that could have been pumped into the securities which of course is why traders never learned to abuse the tool. Wall Street found a new toy and rode it to death when they learned the power of junk, but the fact that junk had that power to begin with is where the problem originated. If banks had to own their own decisions rather than selling them there would not have been a problem. The loans would not have been made and the defaults would not have crippled global banking.

 

[Imp]

To be fair, BAC was pretty shady itself. Buying Countrywide was just plain stupid though.

 

[LegendKiller]

The guys packaging securities off of sub-prime mortgages were completely within the law (for the most part, not counting rare instances of insider dealing obviously) and the people further carving them up into other types of securities were doing it legally. If the tool can be abused to the degree that it trashes the economy of almost the entire planet while not breaking any laws then it's a BAD TOOL. How on earth can you debate the opposite view?

And in the years prior to the meltdown Glass-Steagall was in place which would have minimized the damage if the securities were abused. It also limited the amount of money that could have been pumped into the securities which of course is why traders never learned to abuse the tool. Wall Street found a new toy and rode it to death when they learned the power of junk, but the fact that junk had that power to begin with is where the problem originated. If banks had to own their own decisions rather than selling them there would not have been a problem. The loans would not have been made and the defaults would not have crippled global banking.

WS didn't find a new toy in RMBS, as I stated before, it had been around for 30+ years. MBS has dramatically lowered borrowing costs for home buyers, take a look at the spread between benchmark (say 10yr tsy) and mortgages over the last 50 years, huge improvement.

I will agree that G-S would have prevented *some* of the issues. However, investment cycles have always existed. Before G-S was removed it was the .bombs, before that the S&L crisis...so on and so forth.

GS wasn't even the biggest cause of this last bubble, it was allowance of large amounts of leverage at the IB level. Lehman/Bear/GS weren't even really covered under G-S, nor was AIG, but they were allowed to lever up hugely because Paulson allowed them to do so.

On the flip side of things borrowers shifted mentality from "my house is a home" to "my house is an investment". This removed the natural barrier of caution and a re-pricing of risk. You are less apt to screw around with your home compared to an investment.

But really, the biggest problem is the rating agencies. They are given too much importance. People were buying off of rating alone rather than off of fundamental credit research. They didn't take the time to think about whether the story made sense. But this is what happens in an investment bubble. I am seeing it now. There was an article on ZH about a deal I saw...amazing (and scary) stuff.

How many times, in how many bubbles, have you ever heard "It's a new paradigm". I remember hearing Blodgett and others spewing that phrase. I remember hearing it when I lived in FL from 01-06.

There's nothing inherently wrong with securitization as long as you think for your self and understand risk.

I can tell you that I worked in a major role at an international investment bank starting in 07 and I was absolutely disgusted by some of the stupid shit I saw there. Unsecured junior position icelandic bank bonds, synthetic CDO^2s, pay-day lender bonds, C&D development loans, foreign banks investing in US midwest toll roads. Just stupid things.

What it taught me was that if a story is too good to be true it usually is. Secondly, know what you know, fuck everything else.

 

[webdave]

My mortgage went from Countrywide to BoA and finally to NationStar around 2 years ago. I haven't had any issues with NationStar. I pay my bill online on time and haven't had to deal with any issues.

 

[shortylickens]

In accounting we call that factoring.