How Do I Find Out Who Holds My Mortgage?

Your mortgage loan might have been sold, perhaps several times, since you took it out with the original lender. And the company that services the loan might not own the underlying debt. So, the company you send your mortgage payments to might not necessarily be the loan owner.

Finding out what company or entity owns (holds), backs (guarantees), or services your mortgage loan isn't always easy. Here's how to figure out that information and why you might need it.

What Is the Difference Between a Mortgage Servicer and a Mortgage Owner?

First, let's define the major players in the mortgage lending business, including the mortgage servicer and owner, among others.

What Is a Loan Holder (the Loan Owner)?

The "lender" is the financial institution that loaned you the money. The lender owns the loan and is also called the "note holder" or "holder."

Sometime later, the lender might sell the mortgage debt to another entity, which then becomes the new loan owner (holder). Loans are frequently bought and sold in the mortgage industry.

The sale of your mortgage loan to a new owner doesn't affect the terms or conditions of the original contract. The holder has the right to enforce the loan agreement, which consists of a promissory note, and a mortgage or deed of trust. The note holder is the only party with the legal right to collect the debt and foreclose on the property if you don't make payments.

What Is an Investor?

A mortgage "investor" purchases home loans that lenders originate. Fannie Mae and Freddie Mac, for example, are investors that buy loans from lenders on the secondary market.

What Is a Guarantor?

Mortgage guarantors, such as the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), and the U.S. Department of Agriculture (USDA), guarantee that a loan owner will get paid if the borrower defaults on the loan. Fannie Mae and Freddie Mac also guarantee some loans.

A guarantor is also called a mortgage "backer."

What Is a Mortgage Loan Servicer?

Mortgage holders often hire a loan servicer, which might or might not be a lending institution, to handle day-to-day loan processing activities. The servicer deals with the everyday management of the loan. For example, the servicer:

• collects and processes monthly payments
• tracks account balances
• manages escrow accounts and
• supervises foreclosure procedures if you're in default.

In some cases, the loan owner is also the servicer. Other times, another company services the loan.

How Can I Find Out Who My Mortgage Servicer Is?

The first step in determining who owns or backs your mortgage is identifying your loan servicer. Again, the servicer might be the same company as the loan holder, but not always.

Here are a few ways to discover your loan servicer's identity.

Check Your Monthly Billing Statement

To find out who your loan servicer is, check your monthly mortgage billing statement. Your servicer is the company that sends you the bill for payment.

Check Your Payment Coupon Book

Look at your payment coupon book if you have one. The servicer will be listed.

Check the MERS Online System

If you have a Mortgage Electronic Registration System (MERS) loan, call the MERS Servicer Identification System toll-free at 888-679-6377 or visit the MERS website. Your mortgage servicer's identity will be listed in the MERS system if you have a MERS loan.

If you're unsure whether you have a MERS loan, you can also get this information from the MERS website.

How Can I Find Out Who Owns My Mortgage?

Here are a few different ways to learn your mortgage holder's or backer's identity.

Call Your Mortgage Loan Servicer

The easiest option for finding out who owns your mortgage loan is to call the servicer and ask who holds your loan. You can also ask who backs it. That's why you first need to figure out who your servicer is.

Search for Your Mortgage Holder Online

You might be able to find out who owns your mortgage loan online.

• MERS mortgage lookup. If your loan is in the MERS system, you might be able to determine who owns or backs your loan by calling MERS or running a check on the MERS website.
• Fannie Mae loan lookup tool. Check the Fannie Mae lookup tool online to find out if Fannie Mae owns your loan. Loans are often sold to this government-sponsored enterprise.
• Freddie Mac loan lookup tool. Also, check the Freddie Mac loan-lookup tool to find out if Freddie Mac owns your loan. Like with Fannie Mae, many loans are sold to Freddie Mac.

Send a Qualified Written Request

You can also send a qualified written request (QWR) (specifically, a "request for information") to your servicer asking who owns or guarantees your mortgage loan. Under federal law, the servicer must respond, typically within 30 days, telling you who owns the mortgage.

Review Your Loan Documents

You might be able to find out who backs your mortgage loan by reviewing your loan paperwork.

• FHA-insured loans. Look for an FHA case number on your mortgage contract. However, loans sometimes lose their FHA-insured status. Call your servicer or HUD's National Servicing Center at 877-622-8525 if you have questions about your loan's status. You can also check your billing statement to see if you pay a mortgage insurance premium (MIP). "MIP" is what FHA calls its mortgage insurance. If you're paying MIP, then you have an FHA-insured loan.
• VA-guaranteed loans. A VA-guaranteed loan contains specific language in the note and mortgage that identifies it as a VA loan. Also, fees paid to the VA will be shown in the closing documents.
• USDA loans. Borrowers with mortgages directly extended by the USDA's Rural Housing Service (RHS) should know if they have this kind of loan. The USDA clearly identifies itself as the lender for USDA Direct Loans. And the USDA services these loans through its national servicer. However, homeowners with privately serviced RHS-guaranteed loans might not know about their loan's status because there generally is no specific loan language. To determine if you have an RHS-guaranteed loan, ask the servicer or check your closing documents from when you took out the loan. Review the HUD-1 Settlement Statement and attachments to the note. You can get more information about these types of loans on the USDA Rural Development website.

Why Is It Important to Know Who Holds My Mortgage?

The following examples are just a few scenarios where you'll need to know who services, holds, or backs your mortgage.

You Need Information About Your Account

If you need general information about your loan account, like the monthly payment amount, the next due date, or late fee information, you'll have to call your servicer.

You Want to Learn About Loss Mitigation Options

If you're behind on your payments and want to find out about loss mitigation options, like a loan modification, short sale, or deed in lieu of foreclosure, contact the loan servicer.

Also, if you want to apply for assistance under your state's Homeowner Assistance Fund program (if the program is still open), you can contact your servicer to find out if it participates.

To Make Sure Your Servicer Gives You Accurate Information About Loss Mitigation Options

Different backers offer various loss mitigation options to borrowers. Your options often depend on what entity, like FHA, VA, USDA, Fannie Mae, or Freddie Mac, owns or guarantees your loan, and you probably have choices. Different investors offer various foreclosure alternatives, too.

But servicers don't always give accurate information when telling you what foreclosure alternatives are available. So, you need to know who owns or guarantees your loan to know what options might be available. Learn what options are generally offered for your type of loan and be ready to ask your loan servicer about them.

You're In Foreclosure

If you're a homeowner in foreclosure, you'll want to know the holder. If you think the foreclosing party doesn't actually own your loan, you might have a defense against the foreclosure.

You'll most likely need an attorney to help you review your ability to raise this type of defense and argue it in court.

What Can I Do If I'm Not Sure Who Holds My Mortgage?

If you need help figuring out who holds your mortgage, especially if you're having trouble making your monthly payments, a local foreclosure lawyer can advise you about what mortgage relief is available in your circumstances, help you deal with your loan servicer, and represent you in a foreclosure, if necessary.

A HUD-approved housing counselor is also a good resource for information (at no cost) about different loss mitigation options and mortgage information.