The servicing of our mortgage loan was just recently sold by our neighborhood lender to another institution. Do we have any rights against the transfer and sale of my loan files?
The practice of selling or transferring the servicing of your loan is very common in the mortgage industry and your mortgage servicing can be transferred more than once during the life of your loan. Though the company does not have to ask your permission to transfer the servicing, you are entitled to advance, written notice of the transfer from both your current lender and the new servicer. A "goodbye" letter informing you of the servicing transfer must be received 15 days before the date the successor firm is scheduled to take over. The letter should state the name of your new servicing company, its address, a contact person or department, and payment instructions. Similarly, no later than 15 days after the transfer occurs, you should receive a welcome letter from the new servicer, basically outlining the procedures for the new relationship.
During the 60 days after your loan servicing account has been transferred, late fees for mortgage payments sent on time to your old servicer rather than to the new firm cannot be assessed against your account. It is considered an innocent mistake and you are not adversely penalized.
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