We have had numerous inquiries from our members regarding the transfer of their Citimortgage NACA loans to another servicer.
The transfer is in keeping with Citi’s announcement two years ago that they would be leaving the mortgage servicing industry completely. (https://www.citigroup.com/citi/news/2017/170130a.htm)This transfer in no way affects the terms of the loan and all the benefits of obtaining the loan through the NACA program remain in place.
Here are some tips for members whose NACA mortgages are now being serviced by a different entity:
- The terms of the loan do not change with the servicing (principal and interest payment, interest rate, term length, etc.)
- If the Member gets a letter from the new servicer, they should contact the old servicer to verify the servicing transfer to that entity to avoid sending payments to a scam. (The information about the servicing transfer should include: a) the date on which the old servicer will stop accepting payments b) the date on which the new servicer will begin accepting payments c) the new servicer contact information d) the specific date the right to service the loan transferred to the new servicer.)
- The Member needs to make sure they send the payment to the new servicer on time or there will be a late fee assessed. Loan service change is not a legitimate reason to withhold payments.
- If they had automatic draft set up with the old servicer, make sure they stop it once payments are switched to the new one.
- They need to carefully review the new servicer monthly statement to ensure the payments are credited accurately and the insurance company information is accurate. This is a good practice indefinitely but should be done intensely for a minimum of three months after sending payments to the new servicer.
- If the new or old servicer inaccurately reports late mortgage payments, dispute the reporting with the credit reporting agencies www.ai.equifax.com/CreditInvestigation www.experian.com/disputes/main.html and https://dispute.transunion.com send a letter to the CFPB.