What Is Servicing Transfer?
Servicing Transfer: When your loan's servicing moves to a new company. Your terms stay the same.
A servicing transfer happens when the right to service your loan is sold to another company. It's common and doesn't change your rate, balance, term or payment amount.
Your protections
- The old servicer must notify you at least 15 days before the transfer, and the new servicer within 15 days after (they can send one combined notice)
- For 60 days after the transfer, a payment sent to the old servicer on time can't be charged a late fee or reported late
- Your escrow balance moves with the loan
What to do
- Confirm the notice is real by calling the number on your current statement
- Update automatic payments
- Give your insurer the new mortgagee clause
Good to know
Scammers send fake transfer notices. Never change where you send payments based on an unverified letter or email.