Mortgage Education
Why Mortgage Servicing Transfers Happen & Your RESPA 60-Day Grace Period Rights
Quick Answer (BLUF): After closing, your mortgage note may be sold to Fannie Mae or Freddie Mac while the right to collect monthly payments (Mortgage Servicing Rights) transfers to a new servicer. Under RESPA, you receive a 15-day notice and a 60-day late-fee grace period during any transfer.
Visual Cost & Payment Breakdown · Mortgage Servicing & Ownership Guide
How it flows
Most lenders do not keep the loans they make. After closing, a loan is often sold to an investor or pooled into a security, which gives the lender money to lend again. Two separate rights can change hands: ownership of the loan and the job of servicing it. Neither sale can change your loan's terms, and federal rules require notices when either changes.
Last reviewed against the primary sources listed below.
ToolTransfer date checkerYour 60-day protection window.Stage 1Closing to investorWhy loans get sold.Stage 2Fannie and FreddieThe conventional pipeline.Stage 2Ginnie MaeGovernment-backed loans.Stage 3Owner vs servicerTwo different jobs.Your rightsTransfer noticesWhat must be sent, and when.Your rightsWho owns my loan?How to find out.New guideEscrow after a transferHow escrow balances and tax and insurance payments move when servicing.New guidePayments during a transferThe federal protection for payments sent to the old servicer during a .GlossaryKey termsPlain definitions with sources.GuideWhy loans are soldHow selling loans lets lenders make new ones.GuideSecuritiesHow mortgages are pooled into mortgage-backed securities and what that.PrintableLender questionsQuestions to bring to any lender, ready to print.
The short version
Your loan is safe when it is sold. The CFPB explains that the terms cannot change.