If you have a loan with Countrywide…
Aug 16th, 2007 @ 4:01 PM by MortgageMentor
With all of the news coverage surrounding the uncertainty of Countrywide Home Loans’ future I have received a lot of panicked calls from home owners worried about their loans with the gigantic mortgage lender. Many homeowners are asking if their loan can be called due, and who to make their mortgage payment to in case of a collapse by the company.
If anything happens to Countrywide (and that is still a pretty large if) you will not have your loan called due; and you should continue making your mortgage payment to Countrywide just as you have been every month.
Your loan is in most cases not owned by Countrywide. In the mortgage industry the company who “services” your loan (i.e. the company that sends you the monthly bill and collects and processes your payments) is different from the company who owns your loan.
Countrywide retains the servicing on many loans that they end up selling to investors (such as hedge funds, foreign countries, Wall Street firms, etc.) in the form of Mortgage Backed Securities. So while they continue to handle the payment processing your loan is actually owned by someone else.
If you are a homeowner currently in the process of refinancing with Countrywide or are purchasing a new home with financing from Countrywide, you should definitely check with your mortgage professional to ensure that your loan is still eligible for funding under their newly-revised guidelines. Many existing loans that were submitted prior to the guideline changes are now ineligible based on recent market changes.
Remember, if you are a mortgage holder do not panic; keep on making your payments as normal. If you are in the process of obtaining financing with Countrywide (or any lender for that matter) it is our advice to contact your mortgage professional straight-away to ascertain the status of your loan.