What Happens When Your Mortgage Loan Servicing Is Transferred?

Learn About Mortgage Loans and Mortgage Servicing Rights

If you’ve received notice that the servicing of your mortgage loan was transferred to Freedom Mortgage, welcome! We’re eager to help you maximize your mortgage and achieve your financial goals—now and in the future.

As your mortgage company, after the transfer, we will collect your monthly payments, manage your escrow account, pay your taxes and homeowners insurance premiums, and answer your questions.

We’ll also look for opportunities to lower your interest rate or help you get cash from your home’s equity for things like debt consolidation and home renovations.

Most importantly, your monthly payment and other loan details will not change when the servicing of your mortgage has transferred to us. The only thing that will change is where you send your payment.

What Does the Servicing Transfer of Your Mortgage Loan Mean for You?

Typically, you will need to start sending your monthly payment to a different mortgage company. In this case, Freedom Mortgage.

If you had automatic payments set up with your previous mortgage company, you will need to cancel them. You will then need to establish an online account with Freedom Mortgage and set up new automatic payments with us.

As a reminder, the terms of your loan, including your monthly payment amount, the length of your mortgage, and your interest rate will remain exactly the same.

What Information Will You Receive When the Servicing of Your Mortgage Loan Has Been Transferred?

You will be contacted by both your previous mortgage company and your new one concerning the timing and transfer process.

First, expect to receive a Transfer Notice, also referred to as a “goodbye letter” from the mortgage company that is transferring the servicing of your mortgage. This letter will notify you of the transfer date, as well as the name of your new mortgage servicer and our contact information.

Next, you’ll receive a second transfer notice welcoming you to Freedom Mortgage (our "welcome letter"). The welcome letter will include your new loan number, details about making your monthly payment and setting up your online account, and other important information. Please be on the lookout for this information.

How Will the Servicing Transfer of Your Mortgage Loan Impact Your Monthly Payment?

Your payment amount will not change. However, you will need to start sending your payments to the new mortgage servicer. The information about where to send your payments is included in the welcome letter.

Also, by regulation, beginning on the effective date of transfer, there is a 60-day period during which any payment mistakenly sent to your previous mortgage company cannot be treated as late. This also applies to automatic payments if you forgot to cancel them. Your previous mortgage company will either send the money to us, or they will send the money back to you.

What If You Set up Automatic Payments Before the Servicing Transfer?

Typically, you will need to cancel automatic payments with your previous mortgage company. Your goodbye letter will provide specific instructions. If Freedom Mortgage is your new mortgage company, you will need to set up new automatic payments with us.

You will need your new loan number to first set up your online account with Freedom Mortgage, and then you can set-up automatic payments online. As a reminder, your loan number, as well as instructions for setting up your account and automatic payments, will be included in your welcome letter.

Will the Servicing Transfer Impact Your Escrow Account?

If you had an escrow account with your previous mortgage company, that account will transfer to us, along with the servicing of your mortgage loan. We will use the existing escrow account to disburse payments on your behalf for things like homeowners insurance and property taxes, just like your previous mortgage company did.

If you did not have an escrow account previously, you may have the option to establish one.

Will Freedom Mortgage Transfer Your Mortgage Servicing?

Typically, Freedom Mortgage keeps and services the mortgage loans we originate and purchase, but there is always the possibility that the servicing of your mortgage loan could be transferred.

Where Can You Find More Information When the Servicing of Your Mortgage Loan Has Been Transferred to Freedom Mortgage?

If your loan was recently transferred, and Freedom Mortgage is your new loan servicer, welcome! You can find additional information on the Welcome to Freedom Mortgage page.

You will need your new loan number to set up your online account with us. You can expect to receive your new loan number within two weeks of the transfer date. Depending on your mail service, it could arrive up to 30 days after the goodbye letter from your previous lender. We may be able to email you your new loan number, too, if you have an email address on file with your former servicer.

*Inside Mortgage Finance, Jan.–Jun., 2024

Last reviewed and updated July 2024 by Freedom Mortgage.