## Does USAA Sell Their Mortgages?
USAA is a financial services and insurance company that provides various products and services to members of the military, veterans, and their families. One of the services that USAA offers is mortgages. However, it’s important to note that USAA primarily originates and services mortgages, but they may also sell some of their mortgages to other financial institutions.
### How Does USAA Mortgage Selling Work?
When USAA originates a mortgage, it typically holds the loan in its portfolio for a period of time. During this time, USAA is responsible for servicing the loan, which includes tasks such as collecting payments, managing escrow accounts, and handling customer inquiries.
However, USAA may decide to sell the loan to another financial institution, such as a bank or investment firm. This is often done to free up capital and allow USAA to continue originating new mortgages. When a loan is sold, the new institution typically takes over the servicing responsibilities.
### Benefits of Selling Mortgages
There are several reasons why USAA may choose to sell some of its mortgages:
* **Free up capital:** Selling mortgages allows USAA to free up capital that can be used to originate new loans or invest in other areas of its business.
* **Mitigate risk:** Selling mortgages can help USAA mitigate risk by diversifying its loan portfolio and reducing its exposure to any particular borrower or market.
* **Improve efficiency:** Selling mortgages can allow USAA to focus on its core competencies, such as originating and servicing loans, while leaving the secondary market operations to other specialized institutions.
### Impact on Borrowers
If USAA sells a mortgage that you have, it’s important to understand the potential impact on your loan:
* **Loan terms remain the same:** The terms of your loan, including the interest rate, loan amount, and repayment schedule, should not change when the loan is sold.
* **New servicer:** The new financial institution that purchases your loan will become the servicer and will handle all future servicing activities. You will receive a notification with the contact information for the new servicer.
* **Escrow account transfer:** Your escrow account, if you have one, will be transferred to the new servicer. The new servicer will be responsible for managing your escrow payments for property taxes and insurance.
* **Customer service:** The new servicer should provide you with customer service and support. You can contact them with any questions or concerns regarding your loan.
### Frequently Asked Questions
**Q: Why does USAA sell its mortgages?**
A: USAA sells mortgages to free up capital, mitigate risk, and improve efficiency.
**Q: Will my loan terms change if USAA sells my mortgage?**
A: No, the terms of your loan should remain the same.
**Q: Who will service my loan if USAA sells it?**
A: The new financial institution that purchases your loan will become the servicer.
**Q: How can I find out who is servicing my loan?**
A: You will receive a notification with the contact information for the new servicer.
**Q: What should I do if I have questions or concerns about my loan after it is sold?**
A: Contact the new servicer with any questions or concerns regarding your loan.