After closing a mortgage or refinance, borrowers often receive an Interim Servicer Notification—a legally required letter that explains a temporary loan servicer will handle your payments initially. This interim servicer acts as a short-term manager before the loan transfers to the permanent servicer who will manage the loan long-term.
Why it happens: Loan servicing involves managing payments, escrow accounts, and customer service. Since setting up the loan in the permanent servicer’s system can take 30 to 45 days, an interim servicer bridges this gap by collecting one or two initial payments. This keeps your loan on track from day one.
How the process works:
- You close your loan and receive the Interim Servicer Notification letter either at closing or within 15 days afterward. This letter lists the interim servicer’s contact info, your loan number, payment instructions, and due dates.
- You make your first mortgage payment to the interim servicer as specified.
- Before the servicing transfers, you receive a Servicing Transfer Notice detailing the permanent servicer’s information and the exact transfer date. By law, your old and new servicers must send this at least 15 days prior to the transfer (see Mortgage Servicer Transfer).
- After the transfer date, you send all future payments and inquiries to the permanent servicer.
Important details:
- Confirm the legitimacy of the notification by cross-checking with your closing documents.
- If you mistakenly pay the wrong servicer during the transition, federal law grants a 60-day grace period to forward payments without penalties (Consumer Financial Protection Bureau).
- Timely payments prevent negative credit effects.
Action steps for borrowers:
- Review and save the Interim Servicer Notification carefully.
- Follow payment instructions precisely for your initial payments.
- Watch for the Servicing Transfer Notice and update payment information accordingly.
This intermediary step is routine and ensures your mortgage payments are managed seamlessly as your loan moves to its long-term servicer. For more context on related loan servicing topics, see our glossary article on Mortgage Servicer Transfer and Online Loan Servicing Portal. For authoritative information, refer to the Consumer Financial Protection Bureau’s explanation of mortgage servicers.