Receiving a letter about your mortgage being transferred can feel a little confusing, but it's a pretty common thing in the world of home loans. This article will break down what a Mortgage Servicing Transfer Letter Sample looks like and why you might get one.
What Exactly is a Mortgage Servicing Transfer Letter?
Think of your mortgage servicer as the company you send your monthly payments to and who handles all the behind-the-scenes stuff like paying your taxes and insurance. When your loan "transfers," it means a different company is taking over that job. This letter is your official notification that this change is happening. It's super important to read it carefully because it contains all the crucial details about who to pay and when.
Here's what you can typically expect to find in such a letter:
- The name of your old servicer (the one you're paying now).
- The name of your new servicer (the one you'll be paying soon).
- The date the transfer becomes official.
- Instructions on when and where to send your first payment to the new servicer.
- Information about where your loan history will be kept.
Sometimes, the reasons for a transfer are simple, like a company selling off a portion of their mortgage business. Other times, it might be due to a merger or acquisition.
Sample Letter: Basic Mortgage Servicing Transfer Notification
[Your Lender's Official Letterhead]
Date: [Current Date]
Borrower Name(s): [Your Full Name(s)]
Property Address: [Your Property Address]
Loan Number: [Your Current Loan Number]
Subject: Important Information Regarding Your Mortgage Loan - Servicing Transfer
Dear [Borrower Name(s)],
This letter is to inform you that the servicing of your mortgage loan, currently held by [Old Servicer Name], will be transferred to [New Servicer Name]. This transfer will be effective as of [Effective Transfer Date] .
After [Effective Transfer Date], all future mortgage payments, inquiries, and correspondence related to your mortgage loan should be directed to [New Servicer Name]. Your loan number with [New Servicer Name] will be [New Loan Number], if different from your current one.
Please send your mortgage payment due on or after [Effective Transfer Date] to the following address:
[New Servicer Payment Address]
You can also make payments online at [New Servicer Website] or by calling [New Servicer Phone Number].
We recommend reviewing the enclosed welcome package from [New Servicer Name] for more detailed information about their services and how to set up your account.
If you have any questions regarding this transfer, please do not hesitate to contact [Old Servicer Name] at [Old Servicer Phone Number] before [Effective Transfer Date], or [New Servicer Name] at [New Servicer Phone Number] after that date.
Thank you for your attention to this important matter.
Sincerely,
[Name/Department]
[Old Servicer Name]
Sample Letter: Transfer Due to Merger
[Company A Official Letterhead]
Date: [Current Date]
Borrower Name(s): [Your Full Name(s)]
Property Address: [Your Property Address]
Loan Number: [Your Current Loan Number]
Subject: Important Update: Your Mortgage Loan is Moving to [Company B Name]!
Dear [Borrower Name(s)],
We have some exciting news! Company A and Company B have merged, and as part of this integration, the servicing of your mortgage loan will be transferred to Company B. This change will officially take place on [Effective Transfer Date] .
What does this mean for you? You'll now be working with Company B for all your mortgage servicing needs. They are committed to providing you with the same high level of service you've come to expect.
Starting on [Effective Transfer Date], please make all your mortgage payments to Company B. Your new payment address is:
[Company B Payment Address]
Your new loan number with Company B is [New Loan Number].
For your convenience, Company B offers online payments, automatic payments, and a dedicated customer service team. You can visit their website at [Company B Website] or call them at [Company B Phone Number] for assistance.
We appreciate your understanding during this transition. We're confident that you'll find Company B to be a valuable partner in your homeownership journey.
Sincerely,
The Team at Company A & Company B
Sample Letter: Transfer for Portfolio Sale
[Original Lender's Letterhead]
Date: [Current Date]
Borrower Name(s): [Your Full Name(s)]
Property Address: [Your Property Address]
Loan Number: [Your Current Loan Number]
Subject: Notice of Mortgage Loan Servicing Transfer
Dear [Borrower Name(s)],
This letter is to inform you that [Original Lender Name] has sold a portion of its mortgage loan portfolio, including your loan, to [New Servicer Name]. As a result, the servicing of your mortgage loan will be transferred to [New Servicer Name], effective [Effective Transfer Date] .
We want to assure you that this transfer is a standard business practice and your loan terms and conditions will remain the same.
Starting on [Effective Transfer Date], all payments and inquiries should be sent to:
[New Servicer Payment Address]
You can reach [New Servicer Name] at [New Servicer Phone Number] or visit their website at [New Servicer Website].
We thank you for your business with [Original Lender Name] and wish you the best.
Sincerely,
[Name/Department]
[Original Lender Name]
Sample Letter: Transfer with Minor Payment Change
[Current Servicer's Letterhead]
Date: [Current Date]
Borrower Name(s): [Your Full Name(s)]
Property Address: [Your Property Address]
Loan Number: [Your Current Loan Number]
Subject: Important Update: Your Mortgage Servicing is Transferring to [New Servicer Name]
Dear [Borrower Name(s)],
We are writing to inform you about an upcoming change in the servicing of your mortgage loan. Effective [Effective Transfer Date] , your loan servicing will be transferred from [Current Servicer Name] to [New Servicer Name].
While your loan terms and interest rate will not change, there will be a slight adjustment to your payment amount due to the inclusion of the new escrow analysis by [New Servicer Name]. Your new monthly payment starting with the payment due on [Date of First New Payment] will be: $[New Monthly Payment Amount] .
This new amount includes:
| Principal & Interest: | $[P&I Amount] |
| Taxes: | $[New Tax Amount] |
| Insurance: | $[New Insurance Amount] |
| Total New Payment: | $[New Monthly Payment Amount] |
Please send your payments to the following address starting on [Effective Transfer Date]:
[New Servicer Payment Address]
You can also visit [New Servicer Website] or call [New Servicer Phone Number] with any questions.
Sincerely,
[Name/Department]
[Current Servicer Name]
Sample Letter: Transfer with Escrow Account Information
[Servicer A Letterhead]
Date: [Current Date]
Borrower Name(s): [Your Full Name(s)]
Property Address: [Your Property Address]
Loan Number: [Your Current Loan Number]
Subject: Important Notice: Your Mortgage Loan Servicing is Moving to [Servicer B Name]
Dear [Borrower Name(s)],
This letter provides important information about the transfer of your mortgage loan servicing from Servicer A to Servicer B. This change will be effective on [Effective Transfer Date] .
Your existing escrow account balance will be transferred to Servicer B along with your loan. Here are the details:
- Current Escrow Balance as of [Date]: $[Current Escrow Balance]
- Estimated Escrow Balance to be transferred: $[Estimated Escrow Balance]
- Your new monthly escrow payment will be: $[New Escrow Payment Amount]
Servicer B will manage your escrow account to ensure timely payment of your property taxes and homeowners insurance premiums.
Starting on [Effective Transfer Date], please direct all payments and inquiries to:
[Servicer B Payment Address]
You can reach Servicer B at [Servicer B Phone Number] or find more information at [Servicer B Website].
Sincerely,
[Name/Department]
Servicer A
Sample Letter: Transfer with Online Access Instructions
[Old Servicer's Letterhead]
Date: [Current Date]
Borrower Name(s): [Your Full Name(s)]
Property Address: [Your Property Address]
Loan Number: [Your Current Loan Number]
Subject: Your Mortgage Servicing is Transferring to [New Servicer Name] - Get Ready for Online Convenience!
Dear [Borrower Name(s)],
We're letting you know that the servicing of your mortgage loan will transfer to [New Servicer Name] on [Effective Transfer Date] . This is a standard process, and your loan terms remain unchanged.
[New Servicer Name] offers a user-friendly online platform where you can manage your account, make payments, view statements, and more. Here’s how to get started:
- Visit [New Servicer Website] on or after [Effective Transfer Date].
- Click on "Sign Up" or "Register."
- You will need your new loan number: [New Loan Number].
- Follow the on-screen instructions to create your secure online account.
Your first payment to [New Servicer Name] is due on [Date of First New Payment]. Please send it to:
[New Servicer Payment Address]
If you have any questions about setting up your online access or anything else, please call [New Servicer Name] at [New Servicer Phone Number].
Sincerely,
[Name/Department]
[Old Servicer Name]
Sample Email: Quick Transfer Notification
Subject: Important: Mortgage Servicing Transfer Notification - [Your Loan Number]
Dear [Borrower Name(s)],
This is a heads-up that the servicing of your mortgage loan will be transferred from [Current Servicer Name] to [New Servicer Name] on [Effective Transfer Date] .
Your loan terms and conditions will not change. After [Effective Transfer Date], please send your payments and any inquiries to:
[New Servicer Name]
Payment Address: [New Servicer Payment Address]
Customer Service: [New Servicer Phone Number]
Website: [New Servicer Website]
We'll send you a formal letter with all the details shortly. If you have any urgent questions, please contact [Current Servicer Name] at [Current Servicer Phone Number] before [Effective Transfer Date].
Thank you.
Sincerely,
The Team at [Current Servicer Name]
So, while a mortgage servicing transfer might seem like a hassle, remember it's just a change in who you send your payments to. The key is to read those letters carefully, know who to contact, and make sure your payments get to the right place on time. By understanding the information in these letters, you can navigate the transfer process smoothly and keep your homeownership journey on track.