What to know when your mortgage servicer changes

When your mortgage is sold or transferred to a new servicer, your loan terms don’t change—only who you send payments to changes. You’ll receive notices from both the old and new servicers at least 15 days before the transfer. During the transition, you have a 60-day grace period where late fees can’t be charged if you accidentally send payment to the wrong servicer. Verify any transfer notices are legitimate before sending money to a new address.

What Happens When Your Loan Is Sold

What Changes

Changes:

• Company you send payments to
• Customer service contacts
• Online account portal
• Payment address
• Phone numbers

What Stays the Same

Doesn’t change:

• Interest rate
• Monthly payment amount
• Loan balance
• Loan terms
• Due date
• escrow account

Why Loans Are Sold

Common reasons:

• Lender sells to free up capital
• Servicing rights sold for revenue
• Company mergers/acquisitions
• Portfolio management decisions
• Normal business practice

It’s completely normal. Most mortgages are sold at least once.

Transfer Notices You’ll Receive

From Your Old Servicer

Goodbye letter includes:

• Transfer date
• New servicer name
• New servicer contact info
• Final payment instructions
• Account balance information

Timing: At least 15 days before transfer

From Your New Servicer

Hello letter includes:

• Your new account number
• New payment address
• Online account setup info
• Customer service contacts
• First payment due date to them

Timing: At least 15 days before transfer

What to Do With These Notices

1. Read both carefully
2. Compare information between letters
3. Note new payment address/account number
4. Set up new online account
5. Update autopay if applicable
6. Keep both letters for records

Your Rights During Transfer

60-Day Protection Period

Federal law protects you:

• 60-day grace period after transfer
• No late fees if you send to wrong servicer
• Payment must be forwarded
• Credit can’t be damaged for this

Right to Information

You’re entitled to:

• 15-day advance notice
• Clear instructions
• Contact information
• Response to questions

Escrow Account Protection

Your escrow is protected:

• Funds transfer to new servicer
• Analysis must continue properly
• Any surplus or shortage handled correctly

Common Transfer Concerns

”Will My Payment Change?”

Usually no.

• Same rate, same principal
• Escrow portion may adjust at next analysis
• This would happen regardless of transfer

”What About My Autopay?”

You’ll need to set up new autopay:

• Old autopay will stop
• Set up with new servicer
• May take a cycle to start
• Make manual payment during transition

”What If I Just Paid?”

Your payment should transfer:

• Old servicer forwards to new
• May take a few days to post
• Keep confirmation of payment
• Verify it posted with new servicer

”Do I Have to Accept the New Servicer?”

Yes, unfortunately:

• You don’t choose your servicer
• Loan sale is lender’s decision
• Your contract terms don’t change
• You can refinance if you want different servicer

Avoiding Servicing Transfer Scams

Warning Signs

Be suspicious if:

• Notice arrives by email only (should be mail)
• No notice from current servicer
• Payment address seems unusual
• Pressure to pay immediately
• Contact info doesn’t verify

How to Verify

Before sending payment:

1. Call your current servicer (use number from statement, not letter)
2. Confirm transfer is happening
3. Verify new servicer information
4. Check new servicer is legitimate company
5. Look up new servicer’s contact independently

If Something Seems Wrong

Take these steps:

• Don’t send payment until verified
• Contact current servicer directly
• File complaint with CFPB if needed
• Report suspected fraud

Setting Up With New Servicer

Step 1: Create Online Account

Access your new account:

• Visit new servicer’s website
• Use account number from hello letter
• Create login credentials
• Verify account information is correct

Step 2: Review Account Details

Confirm:

• Loan balance matches
• Interest rate is correct
• Payment amount is right
• Escrow balance transferred

Step 3: Set Up Payment Method

Options typically include:

• Autopay (recommended)
• Online payments
• Phone payments
• Mail payments

Step 4: Update Records

Update your:

• Bill payment systems
• Budget spreadsheet
• Contact lists
• Calendar reminders

If Problems Occur

Payment Not Credited

If payment is missing:

1. Gather proof of payment (cancelled check, confirmation)
2. Contact new servicer
3. Contact old servicer
4. File written dispute if needed
5. Use 60-day protection

Escrow Issues

If escrow doesn’t transfer correctly:

1. Get escrow statement from old servicer
2. Compare to new servicer’s records
3. Request correction in writing
4. Follow up until resolved

Information Errors

If loan info is wrong:

1. Document the error
2. Contact new servicer in writing
3. Provide supporting documents
4. Request confirmation of correction

Filing a Complaint

If servicer won’t resolve:

• File complaint with CFPB (consumerfinance.gov)
• Contact state attorney general
• Consult housing counselor
• Consider legal assistance

Frequent Servicer Transfers

Why Some Loans Transfer Often

Factors:

• Servicing rights market is active
• Some servicers specialize in certain loans
• Company acquisitions
• Financial institution changes

Impact of Multiple Transfers

Usually minimal but:

• Can be annoying
• Records may get lost
• Errors may occur
• Keep your own records

Keeping Track

Maintain your own files:

• Copy of note and mortgage
• All payment records
• Correspondence history
• Escrow statements
• Every servicer transfer notice

Special Situations

Transfer During Modification

If you’re in modification process:

• New servicer must continue
• All terms should transfer
• Follow up to confirm
• Keep all documentation

Transfer During Forbearance

If you’re in forbearance:

• Terms should transfer
• Verify with new servicer
• Get confirmation in writing
• Don’t assume—confirm

Transfer During Escrow Dispute

If you have an ongoing issue:

• Notify new servicer immediately
• Provide documentation
• Request continuation of resolution
• Escalate if needed

Transfer Near Payoff

If you’re close to paying off:

• Get payoff quote from new servicer
• Verify all payments credited
• Confirm lien release process
• Keep records until release received

Timeline of a Transfer

30+ Days Before

• Decision made to transfer servicing
• Notices prepared
• Systems set up

15+ Days Before

• Old servicer sends goodbye letter
• New servicer sends hello letter
• You receive both notices

Transfer Date

• Account moves to new servicer
• Old servicer stops accepting payments
• 60-day grace period begins

0-60 Days After

• Set up with new servicer
• Make first payment to new servicer
• Payments to old servicer forwarded
• No late fees for wrong-servicer payments

After 60 Days

• Full responsibility to pay new servicer
• Late fees apply for missed/late payments
• Normal servicing relationship

Frequently Asked Questions

Why was my mortgage sold?

Loan sales are a normal part of the mortgage business. Lenders sell loans to free up capital and servicing rights are bought and sold regularly. It’s not a reflection of your payment history.

Do I have to accept the new servicer?

Yes. You don’t get to choose your servicer. However, your loan terms don’t change. If you’re unhappy, you can refinance to a different lender.

Will my payment amount change?

Your principal and interest stay the same. Your escrow portion may change at the next annual analysis, but this would happen regardless of the transfer.

What if I accidentally pay the wrong servicer?

During the 60-day grace period after transfer, you’re protected. The old servicer must forward your payment and you can’t be charged late fees for this error.

How do I verify a servicing transfer is real?

Call your current servicer using the number on your statement (not from the letter). Confirm the transfer is happening and verify the new servicer’s information.

Do I need to sign anything for the transfer?

No. The transfer happens automatically based on your original loan documents. You don’t need to approve or sign anything.

What happens to my escrow account?

Your escrow balance transfers to the new servicer. Verify the amount transferred correctly by comparing statements from both servicers.

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