Your Mortgage Was Sold to a New Servicer. Here Is What Changes and the 60-Day Rule That Protects You

Nov. 10, 2026 — A letter saying your mortgage is moving to a new company can look like a scam, a refinance, or a change to your loan. Usually it is none of those. Mortgage servicing rights are bought and sold routinely, and federal rules spell out what each company must tell you and how your payments are protected during the switch. Here is what changes, what does not, and what to check.

What a servicing transfer is

Your servicer is the company that collects your monthly payment, manages escrow for taxes and insurance, and handles questions, payoff requests and help if you fall behind. The owner of your loan and the company servicing it are often different, and servicing can be sold without your consent. The Consumer Financial Protection Bureau's Regulation X servicing-transfer rule (12 CFR 1024.33) governs how that handoff works for most mortgage loans.

A transfer does not change your interest rate, balance, remaining term or other loan terms. The new servicer steps into the existing contract.

The notice deadlines

Under the rule, the old (transferor) servicer generally must send you a notice of transfer at least 15 days before the transfer's effective date. The new (transferee) servicer generally must send its notice no more than 15 days after the effective date. The two companies may combine them into one notice, which must arrive at least 15 days before the transfer. In certain situations, such as a transfer following a servicer's default or termination for cause, the deadline can extend to 30 days after the effective date.

The notice must include, among other things:

• The effective date of the transfer.
• The new servicer's name, address and a toll-free or collect-call phone number for transfer questions.
• A contact for the old servicer.
• The date the old servicer stops accepting payments and the date the new servicer starts.
• Whether the transfer affects any optional insurance, such as mortgage life or disability coverage, and what you must do to keep it.
• A statement that the transfer does not affect the loan's terms other than those directly related to servicing.

The 60-day payment protection

The most practical safeguard: for 60 days beginning on the transfer's effective date, if you send your payment to the old servicer instead of the new one, and it arrives on or before the due date (including any grace period in your loan documents), the payment may not be treated as late for any purpose. The CFPB's official commentary says this bars a late fee on that payment.

That protection is not a reason to keep paying the old company. It is a cushion for mail already in transit and autopay that has not been switched yet. After the window, a payment sent to the wrong servicer can create real problems.

A hypothetical example

The following is illustrative only. Maria's servicing moves from Company A to Company B effective Dec. 1. She receives Company A's notice on Nov. 12 and Company B's welcome letter on Dec. 8. Her Dec. 1 payment, still on Company A's autopay, posts on time with Company A on Dec. 1. Because it was received by the due date within the 60-day window, Company B cannot charge a late fee or report it as late, even if it reaches Company B days later. Maria then sets up payment with Company B for Jan. 1 and cancels the old autopay.

Steps to take when you get a transfer letter

1. Verify it independently. Do not call a number or click a link only because it appears in the letter. Compare the new servicer's name with your most recent statement and any notice from your current servicer, and call your current servicer using the number on its statement or website. Scammers imitate transfer letters to redirect payments.
2. Match the dates. Note when the old company stops accepting payments and when the new one starts.
3. Fix autopay and bill pay. Old autopay may or may not move automatically; ask both companies. Update any bank bill-pay entry yourself.
4. Save records. Keep your last statement from the old servicer, the notices and proof of every payment made around the transfer date.
5. Check escrow continuity. Confirm your escrow balance carried over and that upcoming property-tax and insurance bills will be paid. Tell your insurance agent the new servicer's mortgagee clause.
6. Confirm pending requests. If you were in a loss-mitigation review, a payment plan or a payoff, ask the new servicer to confirm it has the file.

If something goes wrong

If a payment is misapplied, a late fee appears during the protection window, or escrow does not transfer correctly, write to the servicer. Regulation X gives borrowers rights to send a notice of error and request information, and servicers must acknowledge and respond within set timeframes. Use the address the servicer designates for those notices if it has one. The CFPB also publishes mortgage servicing FAQs on these rules, and you can submit a complaint if problems are not resolved.

What this does not mean

A transfer is not a sign that your loan is in trouble, and it does not by itself raise or lower your payment. If your payment amount changes around the same time, the usual reason is a separate escrow analysis for taxes or insurance, not the transfer. Exact protections can vary for some loan types, so read your notices and loan documents and ask the servicer when something is unclear.

This article is general information, not legal or financial advice.