Your mortgage servicer changed. What should you do first?

A letter says a different company will collect your mortgage payment next month. Before changing the payment, verify the transfer notice. Then arrange for payments to reach the new servicer starting on the date the notice specifies.

CFPB: What happens if the company that I send my mortgage payments to changes? (new tab) · CFPB Regulation X § 1024.33: Mortgage servicing transfers (new tab)

A servicing transfer changes who manages the account, not the underlying mortgage terms. The practical work is to confirm where the next payment belongs and make sure your payment and escrow records arrive intact.

CFPB: What happens if the company that I send my mortgage payments to changes? (new tab) · CFPB Regulation X § 1024.33: Mortgage servicing transfers (new tab)

First, identify what actually changed

The lender provides the mortgage financing. The servicer handles the account after closing, including collecting and crediting payments, managing escrow when applicable and answering account questions. The same company may perform both roles, but it does not have to.

Freddie Mac: Mortgage Servicers: Who Are They and How They Can Help (new tab)

Read the notice for the effective date, the final date the old servicer accepts payments, the first date the new servicer accepts them and contact information for both companies. The former servicer generally must provide notice at least 15 days before the transfer. The new servicer generally must provide notice no later than 15 days afterward, although the companies may send one combined advance notice and exceptions can affect timing.

CFPB: What happens if the company that I send my mortgage payments to changes? (new tab) · CFPB Regulation X § 1024.33: Mortgage servicing transfers (new tab)

Compare the notices and confirm that they identify the same loan and transfer date. If something conflicts, contact the companies through information printed on an established mortgage statement or a website you reached independently, rather than relying only on an unexpected link or phone number.

Redirect the payment without paying twice

Start with how you currently pay. If your bank or credit union sends the mortgage through its bill-payment service, update the payee using the new servicer’s instructions. Allow enough delivery time if a check travels by mail.

CFPB: What happens if the company that I send my mortgage payments to changes? (new tab)

If the servicer withdraws the payment automatically, read both companies’ instructions to determine whether the authorization transfers or whether you must enroll again. Confirm the first scheduled withdrawal before making a separate payment so you do not accidentally pay twice.

Save both transfer notices, proof of your last payment to the former servicer and any enrollment confirmation from the new company. Download recent statements and payment history while the old online account remains available. Those records give you a clean comparison if the first new statement is incomplete.

Know what the 60-day protection covers

A payment can cross the handoff. During the 60 days beginning on the effective transfer date, a payment received by the former servicer on time, including any applicable grace period, may not be treated as late or assessed a late fee merely because it went to the former servicer.

CFPB: What happens if the company that I send my mortgage payments to changes? (new tab) · CFPB Regulation X § 1024.33: Mortgage servicing transfers (new tab)

Beginning on the effective date, the former servicer must promptly forward a misdirected payment to the new servicer or return it to the sender and identify the correct recipient.

CFPB Regulation X § 1024.33: Mortgage servicing transfers (new tab)

This protection is a safety net, not a reason to keep using the old payment instructions. Redirect future payments after verifying the transfer. If a payment is returned, preserve the accompanying notice and contact the new servicer promptly.

Audit the first statement, including escrow

Treat the first new statement as a handoff report. Compare it with the final statement from the former servicer. A servicing transfer does not otherwise change the terms or conditions of the mortgage.

CFPB Regulation X § 1024.33: Mortgage servicing transfers (new tab)

If you have escrow, compare the transferred balance and recent tax or insurance disbursements. Your servicer manages the escrow account and uses it to pay those bills.

Freddie Mac: Mortgage Servicers: Who Are They and How They Can Help (new tab)

Contact the new servicer if a payment is missing, the escrow balance did not carry over, a tax or insurance payment appears duplicated or omitted, or a fee lacks a clear explanation. Ask about the exact transaction or record rather than saying only that the statement looks wrong.

• Was my last payment credited once and on the correct date?
• Did the principal balance carry forward correctly?
• Did the escrow balance and recent disbursements transfer?
• Are the due date, rate and scheduled payment consistent with the prior statement?

CFPB: What happens if the company that I send my mortgage payments to changes? (new tab) · CFPB Regulation X § 1024.33: Mortgage servicing transfers (new tab) · Freddie Mac: Mortgage Servicers: Who Are They and How They Can Help (new tab)

Put an unresolved problem in writing

Start with customer service and keep notes of dates, names and promised actions. If the account still appears wrong, send a written notice of error or request for information. Include the borrower’s name, property address, account number and a precise description of the error or records requested. Send it to the servicer’s designated address, which may differ from the payment address. Continue making scheduled payments while the request is reviewed.

CFPB: How do I dispute an error or request information about my mortgage? (new tab)

CFPB guidance says the servicer generally must acknowledge the letter within five days and respond within 30 days, excluding weekends and legal public holidays. Different rules, exceptions or extensions may apply to a particular request.

CFPB: How do I dispute an error or request information about my mortgage? (new tab)

If direct work with the company does not resolve a servicing-transfer or payment-application problem, USAGov identifies a CFPB complaint as a next step.

USAGov: Where to file a complaint about a mortgage company (new tab)

Your next step before the next payment

Write down the verified effective date, the new payment destination and how you will confirm the payment posted. If an account error remains unresolved, use the servicer’s designated written-request address, which may differ from its payment address.

CFPB: What happens if the company that I send my mortgage payments to changes? (new tab) · CFPB: How do I dispute an error or request information about my mortgage? (new tab)

General education, not individualized mortgage or legal advice. Servicing facts and deadlines can depend on the account and the type of request.