My mortgage was bought out

1

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?

2

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.

3

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 The money had been withdrawn.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.

1 Like
4

damn straight and accurate

6

[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.

7

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:

  1. 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.

  2. As noted, when Mr. Cooper started reporting the loan, everything jumped back up.

  3. 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.

  4. 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.