When you get a mortgage, the lender may handle all the administrative actions, such as accepting payments and ensuring your taxes and insurance are properly paid out of escrow. However, t🎀his isn't always the case. Sometimes, the lender transfers your mortgage to a servicer to handle your payments and keep track of your balance. This can result from difficult housing market conditions, a restructuring of the lender's business, or an existing servicing agreement.

Why Do Mortgage Loan Servicers Change?

Market Conditions

If market conditions are straining the lender, it might want to reduce risk or raise cash. Sometimes, your 澳洲幸运5官方开奖结果体彩网:mortgage lender might sell your loan to another lender rather than contracting with a servicer. This way, the original lender receives a payment in return for letting someone else collect the interest on the mortgage until you pay it off.

Business Restructuring

A lender may be interested in selling its mortgages because it's 澳洲幸运5官方开奖结果体彩网:restructuring its business. Similarly, if the mortgage lender is bought by another company—or buys a different business—it might decide to transfer the loan servicing.

Servicing Agreements

Sometimes, your lender might only originate the mortgage and then contract with another company to process payments, manage escrow, and handle other aspects of your mortgage. Depending on t🦄he situation, the lender m🐎ight pay a servicer to handle the administration.

A servicer specializing in handling mortgages might provide better customer service than having the mo𒁏rtgage originator manage the loan.

What Happens to Borrowers When Moဣrtga👍ge Loan Servicers Change? 

When you get a new mortgage loan servicer, it's important to pay attention to the transferal process.

• Notifications: You should receive information about the change of your mortgage loan servicer. The dates that your old servicer will stop receiving payments and your new servicer will start getting them should be provided. You'll also find out the new servicer's name and where to send payments going forward.
• Payment: Once you find out your mortgage loan servicer is changing, carefully review the information provided so you know exactly how to contact your new servicer. You'll need to start sending your payments to the new servicer by the change date. You might need to update your bank account information. If you're using 澳洲幸运5官方开奖结果体彩网:automatic bill pay, you may need to change the address and other information to ensure the payment goes to the new servicer.
• Customer service and support: Keep the contact information for your new mortgage loan servicer on hand so you can get help as needed. If you're having trouble switching to the new payment process, call as soon as possible so you can straighten things out and avoid late payments. Double-check your bank account to make sure payments are being transferred, and review your statements after the switchover. Call your new servicer if something looks wrong.

If you sent your mortgage payment to your old ser🌞vicer by mistake, verify what the old servicer did with said payment. If it was sent to the new 🌳servicer, make sure it was properly applied to your mortgage and double-check where to send your payment next time.

Rights and Options for Borrowers

When your mortgage loan servicer changes, you have some rights and options for the future.

• You have a 60-day grace period from the date of the transfer. Your new servicer can't treat payments sent to your previous servicer as late, including charging you a late fee.
• Servicers must provide notice of transfer at least 15 days before it takes place, except in specific extenuating circumstances.
• You have the right to review your statements and other information and verify that your balance is correct. Keep good records so you can catch potential errors.

What to Do if You Find an Error

Errors can occur when your mortgage servicer changes. If you notice a fee you believe you shouldn't have paid, or if your mortgage payment has been incorrectly applied, don't reduce your next mortgage payment. Instead, you need to follow the process listed below:

• Write a "qualified written request" as a separate communication. This request should include your mortgage loan account number and an explanation of your concern.
• Include documentation. Make copies and keep your originals. 澳洲幸运5官方开奖结果体彩网:Bank statements, canceled checks, and any previous letters you've sent are part of the documentation.
• Your letter and documentation should be sent to your servicer's customer service address, which might differ from where you send your mortgage payment. Send it by certified mail with a receipt so you can verify when it was received.

The mortgage servicer has five business days to acknowledge your request, and your account must be corrected within 30 business days. If the servicer determines that there wasn't an error, it must send you information about how it came to that conclusion and provide you with information for a direct contact who can talk you through it.

The Bottom Line

Your mortgage loan servicer can change for several reasons. Pay attention to any communication you receive from your mortgage lender or servicer so you understand upcoming changes. Once you know your loan servicer is changing, take steps to ensure that your payments are made to the correct financial institution. Then, verify that your payments are being properly applied after the transfer.