What is the purpose of a "servicing transfer notice"?

The purpose of a "servicing transfer notice" is to notify a borrower when their loan servicing is transferred to another company. This notice is a critical communication within the mortgage servicing process, ensuring that borrowers are aware of changes in their loan management. It typically includes important information such as the name of the new servicer, their contact information, and any changes in payment address or procedures.

Providing this information is essential for maintaining transparency and trust between the borrower and the servicers. If servicers change, it can impact how borrowers manage their accounts, make payments, and access services. Thus, ensuring borrowers receive timely and accurate notification helps them navigate this transition smoothly and reduces the risk of missed payments or confusion over whom to contact regarding their loan.