Mortgage transferred to a new servicer? What to check

What the transfer notices should tell you

Your old servicer generally must notify you at least 15 days before the transfer, and the new servicer within 15 days after it, although the two can send one combined notice before the transfer. The notice should give the effective date, contact information for both servicers, and the dates the old servicer stops and the new servicer starts accepting payments. It should also state that the transfer does not affect your loan’s terms other than those directly related to servicing.

Verify the letter before you pay

Because a fake transfer letter could redirect your payment, confirm the transfer with your current servicer using contact information from your own statement or records, not from the letter. The old and new servicers’ notices should describe the same transfer date and account. If something doesn’t match, resolve it with your current servicer before redirecting your payment.

• Confirm the new servicer’s name and the effective date with your current servicer.
• Update online bill pay, or ask whether automatic payments carry over.
• Note the date the old servicer stops accepting payments.

Payments during the first 60 days

For 60 days starting on the transfer’s effective date, a payment you send on time to the old servicer, including within any grace period, generally cannot be treated as late or charged a late fee. The old servicer should forward the payment to the new servicer or return it to you. Still, start paying the new servicer on the date the notices give, and allow extra time if you pay by mail.

Watch escrow, insurance, and your first statements

Your escrow balance should move to the new servicer, which becomes responsible for paying covered tax and insurance bills. Compare the new servicer’s first statement with your last one from the old servicer, including the balance, escrow, and payment amount, and ask your insurer whether the policy’s mortgagee information needs updating. If something doesn’t match, send the servicer a written request for information or a notice of error; a difference is a reason to ask, not proof of an error.

Keep both servicers’ records

Keep the transfer notices, your last statement from the old servicer, and your first statement from the new one together. At tax time, you may receive a Form 1098 from each servicer for the part of the year it handled. In Lighthouse, document analysis can read a transfer notice and update the servicer shown in your Home Profile. Verify the new contact details against the notice and your own records before relying on them.