Why did I receive a letter from Fannie Mae or Freddie Mac?
If you received a “Notification of Assignment, Sale or Transfer of Your Mortgage Loan” letter from Fannie Mae or Freddie Mac, it is because one of them purchased your mortgage loan from your lender, or the most recent owner of the loan. Federal law requires this notice to be sent when there is a change in the ownership of a mortgage loan. If the letter identifies Nexus Nova LLC (Nexus Nova) as the servicer of your loan, it’s because Nexus Nova purchased the rights to service your mortgage loan on behalf of Fannie Mae or Freddie Mac. Although Nexus Nova owns the rights to service your mortgage loan, it does not conduct any mortgage servicing activities. Instead, Nexus Nova has hired several different sub-servicers to service mortgage loans on its behalf. If you have not yet made your first payment, please check your mail for a welcome letter (a “Notice of Servicing Transfer”) from your new sub-servicer with instructions as to where to send your mortgage payments. Please do not send payments to Nexus Nova. Please see “Who is Nexus Nova?” below for more details.
Who is Nexus Nova LLC? Nexus Nova does not originate or service mortgage loans. If you received a notice from Nexus Nova or a notice from Fannie Mae or Freddie Mac referencing Nexus Nova, it is because Nexus Nova purchased the rights to service your mortgage loan, also known as the “mortgage servicing rights”. “Mortgage servicing rights” are contractual rights to service a mortgage loan on behalf of an investor, such as Fannie Mae or Freddie Mac, who owns the mortgage loan. Though Nexus Nova owns mortgage servicing rights, Nexus Nova does not conduct any mortgage servicing activities. Instead, Nexus Nova has hired several different sub-servicers to service mortgage loans on its behalf. These subservicers perform the day-to-day servicing of mortgage loans, including customer service and payment processing.
Why am I receiving a Privacy notice? The Gramm-Leach-Bliley Act (GLBA) requires that financial institutions like Nexus Nova to send annual privacy notices to their customers. These notices describe whether and how financial institutions such as Nexus Nova may share consumers’ nonpublic personal information. If the financial institution wishes to share this information with an unaffiliated third party, other than pursuant to certain permitted uses provided for in the GLBA, it typically must notify consumers of their right to opt out of the sharing and inform them how to do so. The privacy notice you received provides information related to Nexus Nova’s information sharing program. Most other communications regarding your mortgage loan will come from the sub-servicer handling the servicing of your loan on behalf of Nexus Nova.