I have a home in California and have been with GMAC for years with a 1% loan for 30 years. My loan has recently been acquired by OCWEN which sent me a notice recently that as of June 1 my interest rate will now be 2%. Can they do that, or does my GMAC arrangement have priority and should remain in place?
1 Answer from Attorneys
It depends on the terms of the promissory note you signed. If you have an adjustable rate, then yes, they can change the interest rate. If you have a 30 year fixed, then no, they cannot.