Lenders often sell the right to collect your payments (the servicing) to another company, sometimes right after closing. Your loan terms don’t change. You’ll get notices from both the old and new servicer, generally at least 15 days before the transfer, and for 60 days you can’t be charged a late fee if you mistakenly pay the old servicer on time.
What changes and what doesn’t
| Changes | Stays the same |
|---|---|
| Where and how you pay; the website and phone number | Your rate, balance, term and payment amount |
| Autopay setup, which you may need to redo | Your escrow balance, which moves to the new servicer |
Watch for scams
Scammers send fake transfer notices. A real transfer comes with notices from both companies. Verify the new servicer by calling your current servicer at the number on your statement before sending payments elsewhere.
Your checklist
- Read both notices and note the effective date.
- Set up an online account with the new servicer.
- Cancel old autopay and set up new autopay, without overlapping.
- Confirm your escrow balance moved over and your insurance and tax bills will be paid.
- Update your homeowners insurance policy’s mortgagee clause if asked.
- Keep records of your last payment to the old servicer.
If something goes wrong
Send a written notice of error to the servicer’s designated address; servicers must acknowledge and respond within set time limits. If it’s still unresolved, you can file a complaint with the Consumer Financial Protection Bureau.
Planning to make extra payments or remove PMI? Confirm how the new servicer handles them; see paying off early and removing PMI.
Common questions
Why was my mortgage transferred?
Lenders often sell the servicing rights; your loan terms stay the same.
What if I pay the old servicer by mistake?
For 60 days after a transfer, you can’t be charged a late fee for an on-time payment sent to the old servicer.
How do I know a transfer notice is real?
Real transfers come with notices from both servicers; confirm by calling your current servicer at the number on your statement.
Updated October 2026. Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.