Mortgage Servicing Transferred? Here’s What You Should Know

You closed on your home loan, and you’ve made your payment ever since. Now you’ve received notice that your mortgage servicing is being transferred. What does is servicing transfer mean? What’s changing and what isn’t? Why is this a thing? You may have several questions. We’re here to answer them.

What Is Mortgage Servicing?

Mortgage servicing is the act of administering your mortgage from the time your loan closes until it’s paid off. It’s the job of the servicer to collect your payment and forward it to the investors in your mortgage. If you have an escrow account for real estate taxes, homeowners’ insurance and (if applicable) mortgage insurance, they also maintain this.

What Changes In A Servicing Transfer?

The only thing that changes with the transfer of servicing rights for your mortgage is who you make your payment to. You’ll receive communication from your current servicer with additional information, including contact information for your new servicer.

If you make your payment online, you’ll create a new account if your new servicer has online payment. If your servicing has been transferred to Rocket Mortgage^®, welcome! You can set up a Rocket Account and explore what we have to offer!¹  Should you have any questions, we’re here to help!

If you have bill pay set up through your bank, you’ll need to change the recipient to your new servicer.

The servicing change may be a good time to transition to payments directly through the company system. This way, your payment never comes up short. (For example, if your escrow payment changed.)

Your new servicer will send monthly statements and information with where to send payments should you elect to make your payment through the mail.

What Doesn’t Change In A Servicing Transfer?

We've addressed what changes in a servicing transfer. Here’s a list of things that you won’t have to worry about changing:

• Loan term
• Interest rate
• Anything else covered in your mortgage contract

Why Do Servicing Transfers Happen?

Like many businesses, the mortgage business tends to go in cycles. In the mortgage industry, rhythms are dictated somewhat by interest rates. It’s easy to help someone refinance or purchase a home when rates are low. When rates rise, there are fewer people who benefit from a new mortgage. Lenders and servicers adjust.

Servicers looking to raise cash may make part or all of their portfolio available for sale to other servicers. Interested servicers may see this as an opportunity to grow their portfolio.

If the servicer is also a lender, like Rocket Mortgage, they have the opportunity to wow with their client service and gain consideration they might not otherwise have received to earn business the next time someone is in the market for a mortgage.

The Importance Of Good Servicing

You deserve to have the best possible mortgage servicing experience. Yes, servicers collect your payment. But there’s also the maintenance of your escrow account. Managed properly, you can avoid surprises when it comes to taxes and insurance changing. It’s important to have someone who is going to give this the proper care and attention.

Since Rocket Mortgage is a servicer who also originates loans, we conduct regular reviews of our servcing portfolio to see if you might be in a situation to reduce your monthly payment or interest rate or take cash out of the equity in your home. We are here to help assist you with your financial goals. Finally, you want someone who is going to work with you when life throws a curveball. Should you ever have trouble making your mortgage payment, it’s your servicer who will work to understand your situation and go over options to help you move forward with the best possible outcome. Who you work with matters.

We’re the most awarded brand among mortgage servicers in J.D. Power’s time doing the survey.² If your servicing is moving to Rocket Mortgage, you’re in good hands. Our philosophy is to take care of every client, every time, no exceptions, no excuses.

The Bottom Line

Servicing is the administration of your mortgage from the time you close until it’s paid off. Being that it’s such a big part of your financial life, it’s natural to wonder what’s going to happen if servicing is transferred. The good news is that nothing changes within your mortgage contract. You will simply be changing where you send your mortgage payments.

Servicing changes often correlate with the ebb and flow of the mortgage industry. They’re very common. At the same time, your servicer does matter because they manage your escrow account. They’re also the first contact you should make if you find yourself having trouble making your mortgage payment.

If your servicing has been transferred to Rocket Mortgage, we’re thrilled to have you here! We urge you to create a Rocket Account and check us out! You can also chat with us within your account. If you ever need help discussing your current mortgage or a future one, we’re here to help.

¹ Rocket Account is your account created in connection with Rocket Mortgage, Rocket Loans or Rocket Homes Real Estate LLC. Rocket Mortgage, Rocket Loans and Rocket Homes Real Estate LLC are separate operating subsidiaries of Rocket Companies, Inc. Each company is a separate legal entity operated and managed through its own management and governance structure as required by its state of incorporation and applicable legal and regulatory requirements.

²Rocket Mortgage has won more awards than any other brand in the J.D. Power U.S. Mortgage Servicer Satisfaction Studies. This customer satisfaction study has been conducted annually from 2002 – 2024. Visit JDPower.com/Awards for more information.