“Who owns my mortgage loan?” This is not an unusual question, but the answer is not as straightforward as you might think it to be. The owner of your mortgage loan is almost certainly not the person you arranged it with, nor even the company he or she works for.

As long as you maintain your agreed monthly payments, and even if you don’t, the true owner of the loan and the way it is managed is irrelevant to you in most cases.  However, you may want to make sure that your mortgage loan is being administered correctly. If you have a need, or even a wish to know the ultimate holder of your loan ticket, the company servicing your loan is legally obliged to provide you with that information on request.

Fannie Mae and Freddie Mac

First, here is some information on Fannie Mae and Freddie Mac, since these bodies may be very relevant in the ultimate source of your loan. When you take out a mortgage loan, the lender can keep the loan in its own portfolio. This means that the credit agreement you signed (the note) is held by the original lender.

This is the least likely option. What will normally happen is that the lender will sell your mortgage to either Fannie Mae or Freddie Mac.  This does not affect how much you pay or to whom you pay it.  You still pay the lender you made the agreement with. Fannie Mae (Federal National Mortgage Association – FNMA ) and Freddie Mac (Federal Home Loan Mortgage Corporation – FHLMC) will make bundles of similar notes and sell them on to investors.

These are known as mortgage-based securities, which are investments derived from the payments that you and others like you make each month to clear your mortgage loan. Investors pay Fannie Mae and Freddie Mac for bundles, or tranches, of similar mortgages.  These two bodies then pay the cash to lenders so they can offer it to borrowers such as you who are looking for mortgages. So who owns your mortgage?

Who Owns My Mortgage?

If you want to find out who ultimately owns your mortgage loan, you should first ask your mortgage lender, the company that sold you the mortgage.  If you went through a mortgage broker, then your broker should be able to tell you who the loan was taken with. It should be the company you are paying each month. If you are not sure what the name of that firm is, you should be able to find that on your bank statement, or ask your bank for the name of the company taking your monthly repayments.

That company must legally inform you who owns your loan. It might be your original lender. While that is possible, it is not likely. It is more likely to be owned by Fannie Mae or Freddie Mac. Each offers a ‘Lookup Tool’ on its website, enabling you to check whether or not they own your mortgage loan.

Mortgage Electronic Registration Systems, Inc. (MERS)

MERS records and tracks both the ownership and servicing rights of mortgages in the United States of America. You can use this lookup tool if you are still unsure who owns your mortgage loan. It holds details of most mortgages, but its records might be restricted to the original company that sold you the mortgage.

There is no need for anybody with a mortgage within the USA not to know who owns their loan. At least one of the above bodies should be able to answer their question:  who owns my mortgage loan? Failing all of the above, an attorney will be able to find the information you require.