Protect your records · Loan servicing
What to do when mortgage servicing is transferred
A new servicer changes where payments and account questions go. It does not, by itself, rewrite the terms of the mortgage.
The short answer
Read both transfer notices, follow the effective date, update bill pay, and preserve proof of every payment. For 60 days after the effective transfer date, a payment timely sent to the old servicer generally cannot be treated as late or charged a late fee.
01 · Identify the parties
A servicer transfer is not necessarily a loan sale
The servicer collects payments, sends statements, manages an escrow account when one exists, and handles account questions. The owner holds the loan. A loan can be sold without changing the servicer, and servicing can transfer without changing the owner.
A servicing transfer does not alter the mortgage's interest rate, principal balance, maturity, or other non-servicing terms. It changes who performs servicing and where future payments go.
02 · Confirm the handoff
Use the notices to map the exact transfer dates
In the ordinary case, the old servicer generally provides a notice at least 15 days before the effective transfer date and the new servicer provides one no more than 15 days afterward. They may send one combined notice at least 15 days before the transfer.
- Loan owner and mortgage servicer
- Effective date of the servicing transfer
- Old servicer's final payment-acceptance date
- New servicer's first payment-acceptance date
- New payment address, account number, and contact details
- Status of escrow, automatic payments, and any loss-mitigation application
Mortgage-transfer messages can resemble payment-diversion scams. Compare the notice with a recent statement and contact the servicers through independently verified phone numbers or websites.
03 · Payment protection
The 60-day rule protects timely payments sent to the old servicer
During the 60 days beginning on the effective transfer date, a payment received by the old servicer on or before its due date, including an applicable grace period, may not be treated as late. A late fee may not be imposed for that timely misdirected payment.
The old servicer must promptly transfer the payment for application to the account or return it and tell the payer where it belongs. This protection is a safety net, not a reason to keep using old instructions.
04 · Connected instructions
Recheck bill pay, automatic debit, escrow, and pending help
- Update a bank or credit union bill-pay instruction with the new payee details.
- Confirm whether an old servicer debit ends and whether the new servicer requires a fresh authorization.
- Compare the transferred escrow balance and recent tax and insurance payments with both statements.
- Ask the new servicer to confirm receipt of any pending loss-mitigation application or agreement.
Review the first new statement line by line. Confirm the principal balance, payment due, escrow balance, unapplied funds, fees, and recent transaction history rather than assuming every field transferred correctly.
05 · Resolve mismatches
Use the servicer's designated address for written disputes
If a payment, balance, escrow item, or loss-mitigation record is wrong, contact the servicer promptly. A written notice of error or request for information should identify the borrower, account, issue, and requested correction or records clearly.
Send it to the specific address the servicer designates for these requests—not automatically to the payment address. Keep a copy and delivery proof, and continue scheduled payments while the request is pending unless qualified help tells you otherwise.
06 · Build an audit trail
Keep the last old statement and first new statement together
- Old and new servicing-transfer notices
- Mortgage statements before and after transfer
- Bank confirmations, canceled checks, and tracking records
- Escrow balance and recent tax or insurance disbursements
- Automatic-payment cancellation and setup confirmations
- Copies of error notices, information requests, and servicer responses
07 · Official guidance