Homeowners Assistance FAQs
Read important questions and answers to consider when looking for help with your mortgage.
"Making Home Affordable" is part of the Treasury Department´s comprehensive strategy to get the housing market back on track. Through this program, up to 9 million American families may be eligible to refinance or modify their loans to a payment that is affordable now and into the future.
The program expires on December 31, 2015. Your refinance transaction must be closed, and funded on or before that date.
Your loan servicer is the financial institution that collects your monthly mortgage payments, and has responsibility for the management and accounting of your loan. Your servicer may also be your lender, which means they own your loan. However, Santander services many loans on behalf of other investors.
Traditionally, banks used money deposited in customers´ savings accounts to make loans. They held the loans, earning the interest as borrowers repaid over time. Banks were thus limited in the number of loans they could make, because they had to wait to make new ones until savings deposits grew or existing borrowers repaid their loans. Many families who wanted to own a home were unable to do so because there was not a steady supply of money to lend.
Over time, banks started to sell mortgages loans in the secondary mortgage market or turn loans into cash by pooling large groups of loans together to create mortgage–backed securities that could be sold to investors such as pension funds and hedge funds. The investors get the right to collect future payments, and the bank gets cash that it can use to make more loans. Investors hire loan servicers to collect payments and interact with customers.
If you have questions about whether your loan servicer owns your loan or is servicing it on behalf of a third party, you should call your loan servicer at the number on your payment coupon or monthly mortgage statement.