- Who sends it
- Your old servicer, your new servicer, or both in one notice
- What it starts
- A 60-day period in which on-time payments sent to the old servicer cannot be treated as late
- Do this first
- Note the date to start paying the new servicer and update any automatic payments
What this notice is
Your servicer is the company that collects your payment and handles your account. Servicing can be sold or transferred to another company. Federal rules say your old servicer must generally notify you at least 15 days before the transfer takes effect, and your new servicer within 15 days after. They may send one combined notice at least 15 days before.
The notice must give the transfer date, the name, address and toll-free or collect phone number of both servicers for questions, the last day the old servicer will take payments and the first day the new one will, whether any optional insurance is affected, and a statement that the transfer does not change any term of your loan other than terms related to servicing.
What it does and does not mean
- It does not change your interest rate, balance, payment terms or due date. Only who you pay and how you contact them changes.
- It is not a sign of foreclosure.
- For 60 days from the transfer date, if you send a payment to the old servicer on or before the due date (including any grace period), it cannot be treated as late for any purpose. The old servicer must promptly forward it or return it and tell you where to send it.
- If you are behind or in the middle of a loss mitigation review, the transfer does not reset or remove your protections. The new servicer must meet the old servicer's deadlines and must evaluate a pending complete application within 30 days of the transfer date.
Deadlines to note
- The last day the old servicer accepts payments and the first day the new one does. They are the same day or back-to-back days.
- The 60-day window starting on the transfer date.
- Any loss mitigation deadline you already had. It still applies with the new servicer.
What to do this week
- Check that the old and new servicer's notices match: same transfer date, same new company, same account. If you are unsure, call the old servicer at the number on a past statement.
- Change your bill pay or automatic payment to the new servicer starting on the date in the notice, and allow extra time if you mail payments.
- Check your next statements to make sure your payments were credited.
- If you were applying for help, send the new servicer a copy of your application and any decision letters, and ask it to confirm in writing where your review stands.
- If something is wrong, such as you never got a notice, a payment is missing, or the new servicer is not handling your application, send both servicers a written request for information or notice of error, and keep copies. You can also file a complaint with the CFPB.
Is this the same in every state?
Yes. These are federal rules, and they preempt state laws that require notice of a servicing transfer. Your state's foreclosure process and deadlines stay the same after a transfer. Look them up on your state's page.
Transfers between affiliates, or that result from a merger, do not need this notice if your payee, payment address, account number and payment amount all stay the same.
Scams tied to transfer notices
A real transfer notice comes from your servicer and names both companies. Be wary of:
- A letter or call telling you to send payments somewhere new that your old servicer cannot confirm.
- A request to pay by wire, gift card or payment app.
- Anyone who asks for a fee before you have signed an agreement with your servicer. A company that is not your lawyer cannot charge for mortgage relief until then.
- Anyone who tells you to stop talking to your servicer, your housing counselor or your lawyer.
Report suspected fraud at ReportFraud.ftc.gov. See foreclosure rescue scams.
How much time do you have? It depends on your state.
See the foreclosure timeline, deadlines and free local help for the state where the home is.
Common questions
My new servicer charged a late fee in the first 60 days. Is that allowed?
Not if you sent the payment to the old servicer on or before the due date, including any grace period. Send the new servicer a written notice of error with proof of when you paid.
I was in a trial plan when my loan was transferred. What happens?
Keep making your trial payments to whichever servicer the notice tells you to pay. Your protections carry over, and the new servicer must honor the old servicer's deadlines. Ask the new servicer in writing to confirm your plan.
How can I tell a real transfer notice from a fake?
A real notice names both the old and the new servicer, with an address and a toll-free or collect phone number for each, and gives the transfer date. Call your old servicer at the number on a past statement, not a number in the letter, to confirm before you change where you pay.
Keep reading
- Late notice and early intervention letterThis letter is a warning, not a foreclosure. Federal rules make your servicer reach out early and tell you about help. In most cases a foreclosure cannot start until you are more than 120 days behind, so this is the best time to act.
- Breach letter (demand or notice of intent to accelerate)A breach letter says you are in default and gives you a date to catch up. If you do not, the lender can call the whole loan due and move toward foreclosure. Many standard mortgages and deeds of trust require at least 30 days to cure.
- Notice of defaultIn many states that foreclose without a court, a recorded notice of default is the official start of the foreclosure. It is not a sale and not an eviction. It starts a waiting period before a sale can be set, and you can usually still catch up or apply for help.
- Notice of intent to forecloseMany states make the lender send a warning letter before it can start a foreclosure. These letters often give you a set number of days, a cure amount and a list of free counselors. The deadline in the letter matters, so act on it now.
- Lis pendens (notice of pendency)A lis pendens is a public notice, filed in the land records, that a lawsuit or foreclosure affecting your home is pending. It does not mean the home is sold or that you must move. It usually means the court papers are coming or have already been served.
- Foreclosure summons and complaintA summons and complaint means the lender has sued to foreclose. You have a short, firm deadline to respond in writing, often 20 to 30 days from the day you were served. Missing it can let the lender win without your side being heard.