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.