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If your mortgage servicing transfers, send future payments to the new servicer listed in your notice. If the former servicer receives a payment by your loan’s due date—including any contractual grace period—during the first 60 days after the transfer takes effect, federal law says it cannot be treated as late for any purpose. That is a limited protection for payments sent to the wrong servicer, not a 60-day extension to pay.
What changes when mortgage servicing transfers?
A servicing transfer changes which company handles tasks such as collecting payments and maintaining your account. It does not ordinarily change the underlying loan terms. Regulation X requires the transfer notice to say that the transfer does not affect any loan term or condition except terms directly related to servicing. The CFPB’s model notice puts it plainly: “Nothing else about your mortgage loan will change.” Regulation X, 12 CFR § 1024.33; CFPB model notice, Appendix MS-2.
When should the transfer notices arrive?
In the ordinary case, the former servicer (the transferor) must provide notice at least 15 days before the effective transfer date, and the new servicer (the transferee) must provide notice no more than 15 days after it. They may instead send one combined notice at least 15 days before the transfer takes effect. Regulation X, § 1024.33(b)(3).
There are exceptions. Notice may not be required for specified transfers where key payment details do not change, such as certain affiliate transfers or mergers; for an assignment of an FHA-insured mortgage to HUD; or in certain urgent circumstances, including termination for cause, bankruptcy, or regulatory conservatorship or receivership. In the enumerated urgent circumstances, notice may be provided within 30 days after the transfer. Notice given at settlement can satisfy the timing requirement. The regulation sets out the precise conditions for these exceptions.
A notice generally identifies the effective date; contact details for both servicers; when the old servicer stops and the new servicer starts accepting payments; any effect on optional insurance and steps to maintain it; and the statement that the transfer does not change loan terms other than servicing-related terms. Mailed notice generally goes to the address or addresses in the loan documents unless you have supplied a new address under the servicer’s change-of-address requirements. Regulation X, § 1024.33(b); Official interpretation of § 1024.33.
Do I pay the old mortgage company or the new one?
Follow the notice’s payment instructions, including the date the new servicer begins accepting payments and the correct payment address. Update any recurring payment or bill-pay instruction at your bank or credit union; a payment instruction you set up yourself may not update automatically when servicing changes. The CFPB recommends changing bill pay and checking your next statement. CFPB: What happens if the company that I send my mortgage payments to changes?
If the former servicer receives a payment after the transfer date, it must promptly either forward the payment to the new servicer for application or return it to you and tell you the correct recipient. Keep your payment confirmation and transfer notice so you can verify what happened.
Is there a grace period after my mortgage is transferred?
There is a 60-day protection, but it is not a general extension of your payment deadline. For 60 days beginning on the effective transfer date, if the former servicer receives your payment by the applicable due date—including any grace period allowed by your mortgage documents—the payment may not be treated as late for any purpose. The CFPB’s official interpretation specifically says this bars a late fee. Regulation X, § 1024.33(c)(1); Official interpretation of § 1024.33(c)(1).
To assess a payment, compare these dates and terms:
- The effective transfer date, which starts the 60-day window.
- The date the former servicer received the payment.
- Your contractual due date and any grace period in the loan documents.
- Whether the payment arrived within the 60-day window.
The protection applies only when the former servicer receives the payment on time under the loan’s applicable due date and within that transfer window. It does not excuse a late payment or protect a payment received by the former servicer outside the 60 days.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Can a mortgage servicing transfer hurt my credit?
Regulation X says a qualifying payment received by the former servicer within the 60-day window and by the applicable due date cannot be treated as late “for any purpose.” Applying that broad language to credit reporting, a servicer should not furnish that qualifying payment as late. The rule does not set out a separate transfer-specific credit-bureau procedure, however, and it does not guarantee how an individual credit-file dispute will be resolved.
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Separately, Regulation X requires servicers to maintain policies reasonably designed to transfer servicing information accurately. The regulation’s examples of account information include credit-reporting history; this supports accurate record transfer but is not itself a rule determining the outcome of a credit-file dispute. Regulation X, § 1024.38.
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What should I do if the new servicer says my payment is late?
- Check the dates. Compare the transfer’s effective date, the former servicer’s receipt date, and the due date plus any contractual grace period to see whether the 60-day protection applies.
- Gather records. Keep the transfer notice, payment confirmation, and statements showing the payment and any late status.
- Contact both servicers. Give each the payment date, receipt confirmation, transfer date, and applicable due and grace dates. Ask them to investigate how the payment was handled and, if relevant, any late fee or credit furnishing. The CFPB recommends contacting both companies when a transfer causes a payment or account problem. CFPB transfer FAQ.
- Check the next statement. Confirm that the payment was applied correctly and that the account reflects the servicers’ response.
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