As of Feb. 4 2025 my mortgage was bought out from Wells Fargo to Mr. Cooper. Everything looks like it transferred fine. Autopay and escrow as well. I updated the mortgage clause with my insurance too.
I just checked Credit Karma and I took a 100 point hit probably due to my Wells Fargo account closing. How long before this hiccup goes away?
The selling of your mortgage on the secondary market generally should not affect your credit score. Perhaps the credit bureau(s) have not yet received notice of your Mr. Cooper account. You should obtain your credit report from the 3 credit bureaus and monitor over the next month or two that the Mr. Cooper account has appeared. If not provide the credit bureaus with the documentation of your mortgage sale.
Mr. Cooper is a service agent for many banks on existing loans. It is not a collection agent foing after non payers and it does not own the mortgage. Typically, a mortgage by a bank is resold.
My set up. Bank issued me a mortgage. Money automatically taken from bank account each month. You need a service agent. My bank made a deal with Mr. Cooper to be the service agent. Last week I received a notice of non payment on the loan from my bank. The money had been withdrawn. Was told by the bank that it had kept no records of my loan when the servicing was transferred. What happened was that Mr. Cooper was batch processing payments and my bank had not yet processed the massed batch of payments.
What probably happened was that Wells Fargo had not yet processed its incoming payment batch.
Get used to it. Every damn day, something in high technology goes wrong. No one answers phones, emails or letters. You look up Carls, Jr. and learn that it even took down a phone number. You can’t call. This is the business model today.
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damn straight and accurate
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[quote=“charlieg, post:5, topic:7119, full:true”]
First, ignore your credit score unless you are about to do something substantial. Other than paying your bills, there are so many inputs into the magic number it’s ridiculous. I’m on the backend of my life (65) and I’m sitting on a mountain of equity with very little debt. My mortgage is at 2%. I pay off my credit cards every month. I get emails from Experian “you’re using too much credit!!!” and then when I pay it I get “your balances have lowered.” Oh bugger off.
When I refinanced my 6% 30 year mortgage (held my Mr. Cooper) to a 15 year 2% Mr. Cooper instantly bought it. Like within a week. I only had one issue with them… one phone call and cleared it up. The credit blip has nothing to do with Cooper.
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In October of 2023, I had the same exact issue. Originally, I had a mortgage loan with Wells Fargo and they sold it to Rushmore and after a year or two, Rushmore sold it to Mr. Cooper.
During the transfer, my credit score dropped about 60 to 66 (FICO) points to my lowest score over the past 3 years. Thing that stunk, I was in the process of buying my first new car in 15 years. Fortunately, my score was still in the high 770s and still got the best rate available for the vehicle loan.
In all, it took about 2 months before my score rebounded. It did rebound slightly during this time frame but once Mr. Cooper started reporting the loan, everything jumped back to where it was originally.
So, give it a month or two.
Just a few notes:
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From the credit bureau perspective, it appeared to them as though the loan was paid off hence the hit. I see this occurring - not as drastically (maybe 10 points at most), when I pay off a personal loan.
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As noted, when Mr. Cooper started reporting the loan, everything jumped back up.
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If I recall correctly, it took about 3 months to transfer everything. Money was still being pulled from my account and once Mr. Cooper got everything straightened out with the transfer, everything was backdated.
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Fun fact though that made this a bit more nerve wracking is that Mr. Cooper had a data breach. So, they couldn’t draft funds from our accounts to pay the mortgage nor did we have access to our account. Once they recovered from the data breach, they began auto drafting again and backdating appropriately. This had nothing to do with the credit score drop as it had recovered by this point.
One thing I would point out as a secondary issue. Make SURE your title is clear with only the correct lender as lien holder. I would recommend checking it every few years (you can go to the county tax office yourself).
I got into a pickle when I applied or a HE loan for the kitchen re-do. Turns out the lawyer that did our re-fi before 2008 did not do it correctly. Then 2008 hit and he went into family law deleting all of his records (that was a funny conversation - never heard a lawyer squeak before). Three banks later, all of which no longer existed…
I know this is an old thread; but for anyone else with the misfortune of having your loan sold to Mr. Cooper, please be aware that they are a predatory subprime lender and watch them carefully.
They rebrand a lot (previously Nationstar, Seterus, etc.) to try to escape bad press. They have been defrauding customers for years.
DO NOT let them auto-debit your checking account; they’ve been known to hit customers half a dozen times in one month and clean out their accounts.
I have many links, but Clark will only let me post two. But if anyone is interested I can post them in follow-up messages.
Bottom line is, try to get away from Mr. Cooper as fast as you can.
Since I have no control over who sells and buys my mortgage, I’ll toss in my thoughts. Years ago, I re-financed my mortgage to a 15 year 2% rate. Within 2 months, Mr. Cooper (or whoever they were) purchased the mortgage - no idea why. They are still losing money 
Anyway, Mr. Cooper was my mortgage holder before I re-financed, and I only had one minor issue with them. Anyway….
Advice - NEVER, EVER let a company draft your checking account. Pay your bills from your bank at your own initiative. Almost all banks support payments.
Cool story charlieg but none of it is true.
#1 Mortgage rates have never been 2% in the US. The absolute very lowest was 2.1% for a 15-year in 2021. But the lowest on record was 2.93% “years ago” (as you put it). So either way, you have never had a 2% interest rate and are confused about that.
#2 You’ve said roughly the same thing a few times. Nine months ago, you wrote, "When I refinanced my 6% 30- year mortgage (held my Mr. Cooper) to a 15 year 2% Mr. Cooper instantly bought it. Like within a week. I only had one issue with them… one phone call and cleared it up. The credit blip has nothing to do with Cooper."
Then today you again wrote your mortgage was Held by Mr. Coooper then Bought by Mr. Cooper. But then you also say “or whoever they were.” It doesn’t sound like you know who held or who bought your mortgage. But Mr. Cooper certainly didn’t do both.
#3 When a loan servicer purchases an old mortgage, all they have to do is send your bills or foreclose on your house, For every $100k left, Mr. Cooper probably only paid less than $2k for rights to service it. I assure you, they are not losing money.
I’m specifically pointing out how confused you are about absolutely everything you’ve said, because Mr. Cooper is a predatory and crooked company, and the nonsense you’ve responded minimizes the important warning that I’ve put here about them.
Please, people, look at the links I’ve previously posted and do your research on Mr. Coooper/Nationstar. Don’t do business with them if you can avoid it.
Yeah, that drop can be scary, but it’s usually temporary. Account closures often cause a small hit like that, and your score should recover in a couple of months once everything updates. If you want peace of mind, you could check how to contact Westlake Financial Services to confirm the transfer and make sure nothing else is affecting your credit.
this happens a lot when a mortgage gets sold. the old account closes and the new one opens so credit score dips for a bit. it should fix itself in a month or two once the new account reports right. as long as payments and escrow are good you should be fine.