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Why We May Resell Your Mortgage


You have just spent months searching for a home in a chaotic housing market. You have purchased the perfect home, and you’re finally all settled in. Then, you received a notice that Traditions Bank has sold your mortgage to another financial institution. Why on earth would we do that?

Reasons Your Mortgage Could be Resold

Selling mortgages to other lenders allows us to offer better rates for our customers. Over the life of a mortgage, a financing rate that’s one-eighth of a percent lower can mean a big difference to you, the homeowner. Our mission is to have a meaningful impact on our customers, our communities, and each other. One way we can do that is by ensuring that you are able to get the lowest possible rate on your home mortgage.

Most banks service mortgages in one of two ways:

  • Servicing Retained – refers to when the bank keeps the loan account in-house, services the loan, and collects the interest income from it
  • Servicing Released – means that the bank would transfer service or sell the loan to another lender to service the loan

What’s the Benefit to Me?

Rich Lowry, Mortgage Business Development Officer for Traditions Mortgage, notes, “Our business is built on relationships. Servicing to Release enables us to get the best rates for our customers. Across a thirty-year loan, even small increments of percentages really can be a game-changer. When you’re talking about purchasing a home, a better mortgage rate can directly impact a customer’s life. We take that very seriously.”

By Servicing Released, Traditions Bank can offer products to our customers with unique circumstances, such as:

  • Customers with lower credit scores
  • Condominiums that do not conform to traditional guidelines
  • Customers with higher Debt-to-Income Ratios

Will My Payments Change?

When we sell your mortgage to another lender, the original rates and terms of the loan cannot be changed. The only difference you’ll see as a customer is where the payment is sent.

Always in Your Corner

Our business may be banking but our heart is for people. When your loan is sold, our commitment to you as a valued customer remains strong. If we sell your mortgage to another financial institution, we include a clause that allows us to maintain our relationship with you, and to assist you if the new lender is not responsive to any issues you may have concerning the loan.

Contact Traditions Mortgage Today

We pledge to offer you and every customer of Traditions Bank and Traditions Mortgage welcoming and friendly service. Our Associates are available to answer any questions and offer guidance for your unique financial needs.

Rich Lowry Headshot
Rich Lowry

NMLS #414901
Mortgage Business Development Officer
Email Rich


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