No. of Recommendations: 5
I got a letter a couple of days ago from my mortgage company that the mortgage servicing has been transferred to another company as of 9/1. It says that my automatic payment has been cancelled, and that I should hear from the new company "soon" on how to pay. It says that if I don't I should send in my 9/1 payment with my current coupon and my old loan number to the new company. It says the new company won't accept payments until 9/1.

Usually I do ACH with the current servicer and prefer that to sending a payment. However, I don't have info to that with the new servicer and they say not to call the new servicer until 9/1 which is obviously too late for the 9/1 payment.


I would go ahead and send the payment to the current servicer now, either using a push ACH from your bank account, or putting a check in the mail.

For most mortgage payments that are due on the 1st, there is a 15 day grace period. Most customers do not actually pay on or before the 1st, but do pay sometime during the grace period, so most customers would be making their Sep 1 payment after the new servicer started accepting payments on Sep 1.

The current servicer should accept mortgage payments at least until Aug 30 and will account for those payments when they transfer the loan to the new servicer. Even if the payment were to get to the current servicer after they stopped accepting payments, they would forward it to the new servicer, and you should not be charged any late fees or have any delinquencies noted on your credit report. RESPA requires that if the old servicer receives a timely payment for 2 months after the transfer, even if you should have sent the payment to the new servicer, it will be counted as on time, have no late fees and no impact to your credit report.

I do think it is strange that we haven't heard yet from the new servicer. Is this typical not to have heard by now?

I'd say it was pretty typical.

The current servicer is required to drop the notification of a servicer change in the mail to the customers no later than 15 days prior to the transfer. Because the current servicer doesn't want customers to send the payments that they are supposed to collect to the new servicer, the current servicer will usually wait until pretty close to the deadline to drop the letter in the mail.

The new servicer is required to drop the notification of a servicer change in the mail to the customers no later than 15 days after the transfer. Because the new servicer won't actually be able to help you with anything (including taking payments) until the information for your loan is loaded onto their systems, they generally will wait at least until the transfer occurs to send drop their letters in the mail.

AJ
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