[coredog64]

Something to note about your local bank/CU. They might originate the loan, but as sure as water is wet they’re going to sell it to someone else for service.

If you have a good working relationship that you can used for good terms, then go for it. But don’t go with a local bank because you think you’ll continue to work with them.

[redshirtrob]

Yeah, I could not care less about what they do with the loan. I'm not looking for a relationship, just the best deal I can get. Full stop. Do people still think otherwise on loans?

All that said, our local CU does in fact keep their own mortgage portfolio. This may be rare, I don't know. They're a large CU associated with a government contractor.

When I bought my house they had the best deal (rate + closing costs) hands down. When I refinanced they were no longer offering 30yr loans on their portfolio (and I wasn't interested in 10/15), but still were originating them to sell. Unfortunately the 30yr rates were not as quite good as I could get elsewhere and closing costs were close to a wash so I went another direction.

[bradfa]

I didn't even know this was a thing, selling off the servicing of loans. Our first home's mortgage was with HSBC and HSBC did everything, up until we sold that house. Our second (now current) home mortgage was with a local credit union and they did everything, too.

Dealing with the local credit union was super easy for everything. Not that HSBC was bad, but the credit union was always local people to talk to and never any problems.

[mdavidn]

Yes. This first happened to me in 2008, when Bank of America sold my auto loan. I was sending payments to Citizens thereafter.

[bombcar]

I prefer that the servicing stay with the CU/bank I was working with, but wouldn't pay "that" much more for that, a couple hundred sure, actual percentage/points difference? nah.

I had a loan that got passed around a number of times back in the day, ending up with Countrywide each time.

[AviationAtom]

Our bank sold our loan before the first payment even came due.

That said, they were phenomenal during the whole origination process, and they gave us a rock bottom rate (2.375%).

My only fear is servicing being transferred multiple times, rapidly, then having to decipher who to pay now.

[bombcar]

The banks are really surprisingly good about forwarding payments, I found that a mortgage had been sold months before but the autopay from my bank kept working; it wasn't until I went to login that I realized it had been sold off.

[redshirtrob]

Exactly. I've had a bunch of different mortgages over the years. Plenty of them have been passed around, but I've never had to sweat the details. I just set up autopay and forget.

[AviationAtom]

So it isn't so much about the mortgage being sold, but whether servicing is transferred. If servicing is kept them the servicing bank forwards your payments onwards.

[jjav]

> Something to note about your local bank/CU.

Credit Unions tend to be different (at least the 3 I'm a member of, maybe this is not universal) in keeping loans in-house.

The banks will indeed most likely sell off the loan as soon as it's done.

Not that it matters either way.

[bombcar]

My credit onion sells all loans longer than 10 years - but they keep servicing all the loans normally.

Some places sell off the loan and the servicing, that's more annoying.