Approximately half of all mortgage loans are sold from one lender to another, often because the original lender is not equipped to collect payments, manage escrow accounts, pay taxes and insurance, respond to questions, and prepare payoff statements when the home is sold or refinanced.  Some borrowers may receive letters in the mail alerting them of the sale of their loan a few days after closing, while others may not receive a notice for years.

In the mortgage-industry, this is called a “transfer of servicing” and is common practice. Borrowers should not be concerned about these changes, as the majority of lenders transfer their servicing rights to loans.  Generally, the selling of a mortgage loan from one lender to another is a smooth transition and does not impact the borrower.  Every so often though, there is a misstep by either the loan buyer or the loan seller.

Under the National Affordable Housing Act, when a mortgage loan is sold, the borrower is required to receive a “goodbye” letter from their current servicers at least 15 days before their next payment is due.  The letter must state the name, address, and telephone number of the new servicer, the date the old company will stop collecting payments; and the date the new company will start accepting them. Under the Helping Families Save Their Homes Act, signed by President Obama on May 20^th, the new owner of the loan—which may or may not be the servicer—also must notify the borrower of the transfer within 30 days, known as the “hello” letter.

The “hello” letter should outline the same information as the “goodbye” letter sent from the former loan servicing company.  Borrowers should be cautious if they receive a “hello” letter without receiving a “goodbye” letter, as they may be the intended victim of a scam by someone who is hoping to unlawfully receive the monthly mortgage payments.  Concerned borrowers should contact their current loan servicer to verify if their loan has been transferred.  If it has not, authorities should be notified immediately.

In most cases, a mortgage payment sent to the old servicer automatically will be forwarded to the new servicer for a brief amount of time, typically 60 days.  However, if payments are not sent to the correct servicer, they could become lost, and the homeowner may incur late fees.

The website PublicCEO.com reports that new software application developed for the IPhone allows residents to quickly contact their city government by reporting local incidents through a simple software application on the Iphone.  The program can be integrated with a city’s 3-1-1 system and allows residents to take a photograph of occurrences such as traffic gridlock, potholes, issues in city parks, etc., and have them automatically sent to the city for resolution.

The technology is integrated through a global map, which allows the city to see exactly where the problem is, and allows the city to see hot spots where a number of complaints may be coming from.  The city of Pittsburgh, Pennsylvania is the first to integrate the program into its 3-1-1 system.

The state’s green building code, the first of its kind in the nation, took effect August 1^st, announced by the California Building Standards Commission.  This new code standardizes practices for reducing the environmental impact of buildings in a variety of ways.  It encourages the use of renewable, recyclable, and recycled material in the building process.  It also encourages the reduction of a building’s potable water use by 20 percent, and it establishes a two-tiered 15 or 30 percent energy savings above current levels for all buildings through a combination of more efficient appliances and windows, better insulation, and other performance enhancing measures.

Application of the code is currently voluntary.  It was adopted last year as a step toward mandatory green building standards, which Governor Arnold Schwarzenegger has called for by 2010.