Servicing transfer

A servicing transfer occurs when the management of a mortgage loan—such as collecting payments, handling escrow, and managing borrower requests—is moved from one mortgage servicer to another. This can happen when the loan is sold, the original servicer’s contract ends, or the borrower requests a transfer. The process is designed to be seamless, ensuring no disruption to the borrower’s payments or account management. During the transfer, both parties coordinate to ensure a smooth transition of records and responsibilities, maintaining the loan’s terms and preventing any negative impact on the borrower's credit or payment history.