Mortgage Servicer Transfer Explained
If you have a mortgage, your servicer—the company you make payments to and contact for account queries—can change during the life of your loan, even without your consent. Servicer transfers are common in the US because mortgages are regularly bought and sold on secondary markets. This page explains what a servicer transfer means and what to do when one happens.
What a mortgage servicer does
Your servicer collects your monthly payments, manages your escrow account (for property taxes and insurance), processes requests for hardship assistance or loan modification, and reports to credit bureaus. The servicer is not necessarily the entity that owns your loan—it is the entity managing it on behalf of the loan owner.
Why servicers change
When mortgage loans are sold or transferred in the secondary market, the new owner may appoint a different servicer. This can happen multiple times during the life of a loan, particularly for mortgages held in mortgage-backed securities.
What notice you should receive
Federal law (the Real Estate Settlement Procedures Act, or RESPA) requires: at least 15 days notice from your current (outgoing) servicer before the transfer, and notice from your new (incoming) servicer within 15 days after the transfer takes effect. The notices must include: the new servicer’s name, address and phone number, the effective date of the transfer, and information about where to direct enquiries.
How to verify your new servicer
Contact the outgoing servicer in writing to confirm the transfer. Look up the new servicer on NMLS Consumer Access (nmlsconsumeraccess.org) to verify it is a licensed servicer. Do not respond to unsolicited calls claiming to be your new servicer without verifying through official channels.
Escrow during a transfer
Your escrow account balance should transfer to the new servicer. Within 30 days of a transfer, your new servicer must send you an initial escrow statement. Verify that the correct amount has been transferred. If you believe there is a discrepancy, raise it in writing with the new servicer.
What to do if something goes wrong
If you have a problem with a servicer transfer—payments applied incorrectly, escrow errors or missing records—contact the new servicer in writing. If unresolved, submit a complaint to the CFPB.