If your current servicer plans to sell your loan servicing, you must be notified at least 15 days before the effective date of the transfer unless you received a written transfer notice at settlement. The effective date is when the first mortgage payment is due at the new servicer's address.
Under certain circumstances, the current servicer has up to 30 days after the effective date of the transfer to send you notification.
These circumstances include:
* The lender terminates the contract because, for example, you have defaulted on the loan.
* The servicer files for bankruptcy.
* The Federal Deposit Insurance Corporation or the Resolution Trust Corporation begins proceedings to take over the servicer's operations.
* Include certain information in the notice.
If your loan servicing is going to be sold, you should receive two notices -- one from the current servicer and one from the new mortgage servicer. The new servicer must notify you not more than 15 days after the transfer has occurred.
