Buying your home comes with lots of moving parts. One of the most common questions we get is about the Notice of Transfer of Servicing. Here are some quick answers to help make it simple:
What is “servicing”/a Notice of Transfer of Servicing?
Servicing is the company that collects your monthly mortgage payments, manages your escrow (for taxes and insurance), and provides customer support related to those payments.
A Notice of Transfer of Servicing is a legally required letter explaining that the company responsible for managing your mortgage loan is changing to this new servicing company. This new company will likely not be us. Though this is true, the only change you’ll notice is who you send your payments to!
How will I know who my new servicer is?
Our parent company, NFM Lending, will assign you a new servicer. You will receive an email and a physical copy of your Notice of Transfer of Servicing in the mail outlining all of the information you need to know about your new servicer and how to pay them!
Why is my loan being transferred?
This is standard! Mortgage Consultants (like us) originate loans, and then servicing rights are often transferred to a dedicated servicing company. This ensures your payments are handled by a company designed for long-term account management.
Who do I contact now?
For monthly payment questions, escrow, or billing—your new servicer.
For mortgage advice, refinancing, or recommendations on the best places to eat in town (yeah, we’ve got a good list)—The Cowart Team is still here for you!
During this “limbo” stage as your loan gets settled with the new servicer, you can always make your payment to NFM using the First Payment Letter that you would have received at closing.
Will my loan terms change?
No. Your loan amount, interest rate, and terms stay the same. Only the company handling your payments changes.
Other Info To Know:
Closing on a home is public record, so you will also get quite a bit of junk mail for every mortgage and home insurance, alarm systems, and so on. This is completely normal and will fade over time.