It can be unsettling to receive notice that your mortgage loan will be serviced by a new company—but there’s no need to worry.
Loan transfers happen often. As a homeowner, the most important thing to know is that you’ll be working with a different company when you make payments or need assistance with your loan. The terms, balance, interest rate, and other details of your loan will stay the same.
Note: Your payment amounts may change if you have an Adjustable Rate Mortgage (ARM) or another type of adjustable loan.
Who is involved?
There are many people involved in the loan transfer process. But as a homeowner, you only need to know who your current and new mortgage servicer is.
A mortgage servicer (that’s us!) is the manager of your loan. We communicate with you, accept payments, and pay your taxes and insurance from your escrow account. We send the principal and interest portion of your payment to the owner of your loan.
In some cases, the owner of your loan is also your servicer. But if you’re working with us, we only service loans.
Why was my loan transferred?
Your loan may have been transferred for a variety of reasons. If your loan was transferred shortly after you closed on your new home, it’s likely that your lender doesn’t service loans and transferred it to someone who does (like us!). Or your lender may have transferred your loan for their own financial reasons, perhaps to generate cash or free up capital to provide more loans for borrowers.
It’s important to note that your consent is not required for the sale of your mortgage, and you’re not able to choose who services your loan—that’s up to the owner of your loan.
America’s top lenders and investors trust Shellpoint Mortgage Servicing to service their loans because we provide exceptional homeowner service, and we have advanced technology that provides our team with the tools and resources needed to service loans more efficiently than the industry standard.
We pride ourselves on loan-boarding practices that minimize the stress of a loan transfer and increase homeowner satisfaction. If your loan recently transferred to us and you need assistance, call us at 800-365-7107.
What does the loan transfer process look like?
Your current lender is required to notify you of the transfer at least 15 days before it takes place. You will receive information in the mail and in your online account about the transfer process from your current servicer and new servicer. This information should include timelines, payment information, and next steps.
Be aware of fraud! If you receive a notification from a new servicer before you hear anything from your current servicer, don’t send them any money or personal information. If in doubt, call your current servicer to confirm that the transfer is legitimate.
What do I need to do?
The only thing you need to do is pay close attention to the information you receive from your current servicer and new servicer. They will outline what steps you need to take—if any.
Payment details often need to be updated or re-activated with a new servicer.
- The “goodbye” letter from your current servicer should inform you if your autodraft information will transfer.
- If you have automatic payments set up through your bank, update the payment information to reflect your new servicer’s information.
- If you’re not sure that your first payment was successful, contact your new servicer a week or two after your payment was sent and confirm that they received it. You’ll be given a grace period of 60 days for misdirected payments so use that time to ensure your payments are being received.
The bottom line
Though it may cause stress for some homeowners, transferring loans allows lenders and servicers to remain stable and profitable.
If your loan is sold, pay attention to all of the information you receive from your current and new servicer to ensure the process goes smoothly. Don’t hesitate to call your servicer if you have questions or concerns.
We are one of America’s top non-bank mortgage servicers, and we strive to provide excellent customer service. We want your loan transfer to go smoothly and we’re here to help if you need us.