Can Fannie or Freddie own my loan if I make my payment to a bank?

Yes they can.  (and to qualify for a HARP Loan, it must be owned by Fannie or Freddie)

After you take out a home loan, your lender obviously sends you monthly statements indicating the mortgage payment due each month, and the remaining principal balance on the loan.  This is known as “servicing the loan”, – collecting payments and applying the payment towards principal and interest, and adjusting your loan’s principal balance.

Someone has to “service” the loan, regardless of who owns the loan.  Most loans are sold by the lenders to Fannie Mae and Freddie Mac, but the lenders will continue to service the loan on behalf of Fannie Mae or Freddie Mac.  That is why you appear to be making your payment to your bank, lender or credit union…  In fact, sometimes, the “servicing” of the loan is even sold to a 3rd party that just services loans.

So, it is very possible that your payment goes to your local bank or credit union, but the loan is actually owned by Fannie or Freddie.  And, if you are hoping to use the HARP program to allow you to take advantage of the current refinance rates, it is worth taking 5 minutes to check.  It is easy.  You only need to know your name and address to check.

You can check Fannie Mae here and Freddie Mac here If your loan is owned by one, then contact us for rates and to discuss other qualifying criteria.  Good luck.