What happens if the company that I send my mortgage payments to changes?
The company that you send your monthly mortgage payments to is your mortgage servicer. Your servicer can change.
Your mortgage servicer may transfer the mortgage servicing rights for your loan to another company to service your loan.
If your mortgage servicing rights are transferred to a new servicer, you will need to start sending your monthly payments to the new servicer after a certain date. You will also need to direct any questions about your loan to the new servicer.
You should be notified of the transfer before it happens
Your old and new servicers generally must send you a notice telling you about the transfer of the servicing rights to your loan. Your old servicer generally should send this notice at least 15 days before your loan’s servicing rights are actually transferred to the new servicer. Your new servicer generally should send a notice to you within 15 days after the servicing rights for your loan are transferred, unless it was combined with the first notice. The notice(s) should tell you:
- The date on which your old servicer will stop accepting payments
- The date on which your new servicer will begin to accept payments
- The new servicer’s name and their contact information
- The specific date the right to service your loan transferred to the new servicer
If you send your payments to the wrong servicer after you’ve been notified of the servicing transfer, your payments may not be credited properly. Here’s what to do:
- Pay attention to the date you need to start sending your payments to the new servicer. Be sure to account for additional time if you send your mortgage payments by mail.
- If you authorize your bank’s or credit union’s online bill payment system to automatically pay your mortgage payment, you will need to tell your bank or credit union to make those payments to the new servicer. Learn more in our blog about automatic debit payments.
- Carefully review your monthly mortgage statement to confirm that your payments are being credited accurately.
Additionally, for 60 days from the date your loan servicing transfers, your new servicer cannot charge you a late fee or treat the payment as late if you sent it to your previous servicer on time or within the applicable grace period.
Issues related to servicing transfers
If you’re having issues with your mortgage because your servicer has changed, you may want to send both your old and new servicers an information request or a notice of error. For example, you should send a notice if:
- You never received a notice of transfer
- You think your payments are not being applied correctly
- You had an application for loss mitigation with your old servicer and your new servicer isn’t working with you on that application