|Posted by: Payton Dec 10 2003, 02:15 PM
| Does anyone know anything about transferring the ownership of a loan from one company to another company?
|Posted by: loanuniverse Dec 20 2003, 05:05 PM
I am sorry, but your post was in a forum that I don't check very often and I missed it for several days.
Regarding your question about transferring a loan. My knowledge is very limited since that is a purely operational function. However, I can tell you the following:
- Loans can be assigned/sold amongst lenders all the time. In fact, this is almost a standard in the residential mortgage industry as there are companies whose purpose is to originate loans to be sold to investors. This is somewhat rare in commercial lending, but it does happen. Just this year, I did an analysis of a borrower where my employer did not execute new documentation, but got the documentation from a competing bank assigned to us.
- You will need to talk to an attorney to make sure that you do the transfer correctly.
- Loans can be sold without the borrower even knowing about it. The servicing of the loan can remain with the original lender.
Hope this helps.