finances (~)
“Hi, we’re transferring your loan servicing from KindOfOkay Credit Union to EvilCorp
beginning July 1st. Don’t worry, no other changes will be made to your loan.”
*Googles EvilCorp, finds consistent one star reviews and multiple BBB complaints*
Welp, I guess I’m paying this off earlier than I’d planned this year.
re: finances (~)
@Goldkin = ^= Why is... that allowed?
Like, you borrow money from one corporation, why should who is getting that money back, change hands? That doesn't make sense.
re: finances (~)
@Taylor In the US, loans are sold on an open market. It’s common to have it split up between who holds the security (usually immediately sold to a federal agency) and who services the loan (often sold as an annuity between creditors).
I can’t speak to why it’s legal, but it happens because the value of assets fluctuates depending on the value of the dollar. So when the offering price EvilCorp provided up front exceeded the time value of the payments, it sold.
re: finances (~)
@Taylor And if you’re wondering if that sounds like a hellscape for bad actors, it kind of is. It was only a decade ago when that market blew up in what we now know to be the subprime mortgage crisis.
finances (+)
Update: that was a very scary number.
My celebration for paying off the thing was Subway, because somehow, I hadn’t yet had lunch.