Mortgage servicing · 12 CFR 1024.33Mortgage servicing transfer after closing: notices and the 60-day grace rule
It is common for a new loan's servicing to move to another company soon after closing. The old (transferor) servicer must send a notice of transfer at least 15 days before the effective date, and the new (transferee) servicer no more than 15 days after it; one combined notice at least 15 days before, or notices handed over at settlement, also satisfy the rule (12 CFR 1024.33(b)(3)). The notice gives the effective date and the names, addresses and toll-free or collect numbers of both servicers (§1024.33(b)(4)). For 60 days from the effective date, a payment the old servicer receives on or before the due date, including any grace period, may not be treated as late for any purpose, and the old servicer must promptly forward it to the new servicer or return it (§1024.33(c)).
What Regulation X requires
Old servicer
Notice at least 15 days before the effective date of transfer (§1024.33(b)(3)(i)).
New servicer
Notice no more than 15 days after the effective date.
At closing
Notices provided at settlement satisfy the timing rule (§1024.33(b)(3)(iii)).
Contents
Effective date; name, address and toll-free or collect number of each servicer (§1024.33(b)(4)).
60-day protection
A timely payment sent to the old servicer cannot be treated as late; it must be forwarded or returned (§1024.33(c)).
Not a transfer
Affiliate moves, mergers or master-servicer changes with no change in payee, address, account number or amount (§1024.33(b)(2)).
What a new owner should do
- Check that the notice names the same loan and comes from both servicers – a payment-address change by email alone is a fraud warning sign.
- Call the old servicer at the number on its statement to confirm the transfer before sending money elsewhere.
- Update autopay to the new servicer from the effective date.
What the TC can add after closing
- A reminder to watch for the first statement from the servicer.
- The warning that payment instructions should be confirmed by phone with a known number.
- Copies of any transfer notices given at settlement in the closed file.
Questions new homeowners ask
Why was my mortgage transferred right after closing?
Lenders often sell or transfer servicing; the terms of the loan stay the same, and both servicers must notify you (12 CFR 1024.33(b)).
What if I paid the old servicer after the transfer?
For 60 days after the effective date, a payment the old servicer receives on time cannot be treated as late, and it must be forwarded or returned (§1024.33(c)).
How much notice do I get before a servicing transfer?
At least 15 days before the effective date from the old servicer, and within 15 days after from the new one, unless the notices were given at closing (§1024.33(b)(3)).
Related guides
Keep the transfer notices from closing in the deal's documents in ClosingCode and add a post-closing reminder about the first payment.
Start free trialSource: 12 CFR 1024.33 (Regulation X, eCFR, read October 25, 2026).
General information, not legal advice. ClosingCode is software; it is not a law firm, lender or brokerage. This guide is not a substitute for the advice or services of an attorney.