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littleone1969

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The bank that holds the mortgage was bought by another bank. Why does my credit report show 4 accts?

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The Mortgage Shuffle

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Sometimes a bank (and its liabilities - deposit accounts - and assets - loans) are assumed by another bank.  Other times, a mortgage (or collection of mortgages in a group such as a collateral-back mortgage obligation -  a bunch of mortgages bundled together to make a security) can be sold to another bank.  When that happens, you might see more than one or two (or more, if it is sold and sold again) open mortgages on your account, while the credit reporting bureaus catch up.  

This is nothing to stress to much about, as it takes about 1-3 months for the reporting agencies to catch up between the payments and the like.  Give it a couple of months and it will clear up; if you are applying for credit, you might run into a minor issue with the debt to asset ratio not being correctly reflected, which might require you to call the creditor for a manual review -  an underwriter or credit specialist will almost automatically identify the issue and pass it through, given that the mortgage(s) will show the same property. 

Note that the reverse can also happen, where you show NO accounts open for 1-3 months.  When I refied last year, the 8 week gap between my "first" payment on the new mortgage allowed the old bank to close out on my credit report, the CU I refied through to open and then close the mortgage that they subsequently sold to Fannie Mae, and then another month before Fannie Mae reported the mortgage to the three bureaus.  I had 14 weeks where I didn't show any mortgage on my house.

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