If the servicing of a mortgage is transferred, how many days in advance must a lender inform the borrower?

In the case of transferring the servicing of a mortgage, the lender must provide the borrower with a written notice at least 15 days in advance of the transfer. This requirement is set forth to ensure that borrowers are adequately informed about changes in the management of their mortgage account. The notice allows borrowers to be aware of who will be handling their mortgage payments and customer service inquiries, facilitating a smoother transition and maintaining clear communication.

The purpose of such a notification is to prevent confusion and to guide the borrower on where to send payments, as well as to inform them about any potential changes in terms or handling of their mortgage. Understanding this timeline is essential for compliance with the Real Estate Settlement Procedures Act (RESPA) and ensuring that consumers are treated fairly during the mortgage servicing process.