If you’re new to homeownership, seeing your mortgage transferred to another company can feel confusing—even frustrating. You chose Element Home Loans for a reason, so what does it mean when you receive a notice that another company is now handling your loan?

At Element Home Loans, we’re committed to a smooth, transparent lending process from start to finish. Here’s what you need to know about the difference between lenders and servicers, and why loans are sometimes sold on the secondary market.

What’s the Role of a Lender?

Think of your lender as the originator of your mortgage. When you work with Element Home Loans, we’re the ones who assess your creditworthiness, verify your income, and create a loan that fits your unique needs. This is often called direct lending or correspondent lending,  meaning we work with you directly, from application through closing, and can offer competitive rates and terms.

And What is a Servicer?

Once your mortgage is established, the day-to-day management of your loan (i.e., collecting payments, managing escrow accounts, sending monthly statements) is handled by a servicer.  In some cases, Element Home Loans continues to service loans in-house. However, sometimes loans are transferred to another company that specializes in loan servicing, even though Element originated and funded the loan.

Why Do Some Loans Get Sold?

There are a few reasons why loans are sold, but ultimately, it comes down to creating more opportunities for both lenders and borrowers. As a direct or correspondent lender, Element Home Loans may sell a percentage of our loans on what’s called the secondary market.  This allows us to maintain a steady flow of available funds, so we can continue offering mortgages to new clients at competitive rates.

When a loan is sold, it doesn’t change the terms, interest rate, or any critical details of the agreement. Think of it like a trade: Element Home Loans transfers the loan, and a new servicer takes over the day-to-day management while you continue to enjoy the benefits of your original terms.

How Does This Affect You?

Practically, the most noticeable change is often where you send your monthly payment. If your loan is sold, the new servicer will contact you with instructions for future payments. Rest assured, however, that your loan terms will remain the same as those you agreed upon. And here’s the good news: your relationship with the Kevin Blair Team doesn’t change.

Whether your mortgage is serviced by Element or another company, Kevin Blair is your lender for life. This means that for any questions, future home purchases, or refinancing needs, you can return to Kevin and the team you know and trust. Our commitment to supporting you doesn’t end when your loan is transferred.

Why This Process Benefits Borrowers

This system actually creates advantages for you as a borrower:

– Competitive Rates: By selling loans on the secondary market, we’re able to free up capital and keep offering competitive interest rates.

– Improved Service: Loan servicers are equipped to handle the complexities of managing loans long-term, allowing Element Home Loans to focus on helping more people become homeowners.

A Quick Recap

– Lenders create and fund loans.

– Servicers handle day-to-day management, like collecting payments and managing escrow.

– Selling a loan allows lenders like Element Home Loans to help more borrowers without changing any terms of your original agreement.

At Element Home Loans, we’re here to answer any questions you may have about your loan. If you’ve received a notice about a change in servicer, feel free to reach out—we’re happy to help clarify and support you throughout your homeownership journey.