Where your mortgage goes after closing, and why it gets sold
Servicing transfer notices
How it flows
When servicing moves, the old servicer generally must notify you at least 15 days before the transfer and the new servicer within 15 days after, unless one combined notice is sent in advance. For 60 days after the transfer, a payment sent on time to the old servicer cannot be treated as late or charged a late fee. A separate notice is required within 30 days when the loan's owner changes.
Last reviewed against the primary sources listed below.
What the notice must show
- The effective date of the transfer.
- When the old servicer stops and the new one starts accepting payments.
- Contact details for both servicers.
- That the loan's terms are not changing.
Do these now
- Update automatic payments.
- Check your first statement from the new servicer.
- Send a written notice of error to both servicers if something is wrong.
Questions about loan sales
What happens if I pay the old servicer after a transfer?
For 60 days after the transfer, an on-time payment to the old servicer cannot be treated as late or charged a late fee.