What Happens When Your Mortgage Is Sold to Another Servicer?

If you've received a notice that your mortgage has been sold to a new servicer, you might be wondering: What does this mean for me? Don’t worry—this is a common part of the mortgage industry, and at CPF Mortgage, we’re here to help you understand what it means. It doesn't mean anything is wrong with your loan or that your terms are changing.

Let’s break it down so you understand exactly what’s happening and how it affects you.

First, What Is a Mortgage Servicer?

Your mortgage servicer is the company that manages your loan after closing. They collect your monthly payments, manage your escrow account, and handle customer service requests. They’re essentially the point of contact for anything related to your mortgage after the loan funds.

Why Was My Mortgage Sold?

Selling mortgages or servicing rights is standard practice. Lenders often sell loans to free up capital, manage risk, or focus on originating new loans. The key point is this:

Your mortgage terms stay the same.
Your interest rate, loan balance, monthly payment, and repayment schedule do not change.

Only the company you send your payments to and contact for questions or concerns may change.

What You Can Expect

When your mortgage is transferred, you’ll receive two notices:

1. Goodbye Letter – from your current servicer, telling you the loan is being transferred.
2. Welcome Letter – from your new servicer, introducing themselves and giving you information on how to make future payments.

Both notices will include your loan number, the effective date of the transfer, and your rights as a borrower.

Important Tips for a Smooth Transition

• Keep making payments on time – Even during the transfer window, it’s crucial to stay current.
• Verify payment details – Double-check the new payment address or login portal provided in the welcome packet.
• Watch out for mortgage scams – Fraudsters may send fake notices pretending to be your new servicer. Always confirm the info through the company’s official website or by calling their verified number.
• Review your escrow – If you pay taxes and insurance through escrow, confirm that your new servicer received all your records.

Does This Affect My Credit?

Nope! As long as you continue making payments on time, your credit score won’t be impacted. In fact, mortgage transfers are not unusual and are handled in a way that protects your payment history and credit status.

Final Thoughts

At CPF Mortgage, we believe in full transparency and guiding you through every step—even when your loan is transferred to another servicer. Remember, it’s a back-end change, not a personal one. And you still have the power of your mortgage broker behind you.

Have questions about your mortgage or need help navigating a servicer switch? We’re just a call or click away.