If you’ve received notice that the servicing of your mortgage loan was transferred to Freedom, welcome! We’re eager to help you maximize your mortgage and achieve your financial goals—now and in the future.
As your mortgage company after the transfer is made, we will collect your monthly payments, manage your escrow account, pay your taxes and homeowners’ insurance premiums, and answer your questions.
We’ll also look for opportunities to lower your interest rate or help you get cash from your home’s equity for things like debt consolidation and home renovations.
Most importantly, your monthly payment and other loan details will not change when the servicing of your mortgage is transferred to us. The only thing that will change is where you send your payment. Watch our video and read on to learn more!
What does the servicing transfer of your mortgage loan mean for you?
In most cases, you will need to make your monthly payment to a different mortgage company, in this case, Freedom Mortgage.
If you had automatic payments set up with your previous mortgage company, you will need to cancel them. You will then need to establish an online account with Freedom Mortgage and set up new automatic payments with us.
As a reminder, the terms of your loan, including your monthly payment amount, the length of your mortgage and your interest rate will remain exactly the same.
What information will you receive when the servicing of your mortgage loan is transferred?
You will be contacted by both your previous mortgage company and your new one concerning the timing and transfer process.
First, expect to receive a Transfer Notice, also referred to as a “goodbye letter” from the mortgage company who is transferring the servicing of your mortgage. This letter will notify you of the transfer date, as well as the name of your new mortgage servicer and contact information.
Next, you’ll receive a second transfer notice welcoming you to Freedom Mortgage (our "welcome letter"). Your welcome letter will include your new loan number, details about making your monthly payment and setting up your online account, and other important information. If you have given us consent to contact you via email, you will also receive an email with the same information. So, please be on the lookout.
How will the servicing transfer of your mortgage loan impact your monthly payment?
Your payment amount will not change. However, the company you make your payment to will change. That information will be in your welcome letter.
To ensure your payment will not be marked as late during the transition, there is a 60-day grace period in place. Starting from the effective transfer date, any payment mistakenly made to your previous mortgage company must be forwarded by them to Freedom Mortgage with no penalty to you. This also applies to automatic payments if you forgot to cancel them.
What if you set-up automatic payments before the servicing transfer?
Typically, you will need to cancel automatic payments with your previous mortgage company. Your goodbye letter will provide specific instructions. If Freedom Mortgage is your new mortgage company, you will need to set up new automatic payments with us.
You will need your new loan number to set up your Freedom Mortgage online account and automatic payments. As a reminder, your loan number, as well as instructions for setting up your account and automatic payments, will be included in your welcome letter.
Will the servicing transfer impact your escrow account?
If you had an escrow account with your previous mortgage company, those funds will be transferred to us along with the servicing of your mortgage loan. We will then make timely disbursements on your behalf for things like homeowners’ insurance and property taxes just like your previous mortgage company did.
If you did not have an escrow account previously, you may have the option to establish one.
Will Freedom Mortgage transfer your mortgage servicing?
Typically, Freedom Mortgage keeps and services the mortgages we purchase and originate, but there is always the possibility that the servicing of your mortgage loan could be transferred.
Where can you find more information when the servicing of your mortgage loan is transferred to Freedom Mortgage?
If your loan was recently transferred, and Freedom Mortgage is your new loan servicer, welcome! You can find additional information on the Welcome to Freedom Mortgage page.
You will need your new loan number to set up your online account with us. You can expect to receive your new loan number within 2 weeks of the transfer date. Depending on your mail service, it could arrive up to 30 days after the good-bye letter from your previous lender. We may be able to email you your new loan number too, if you had an email address on file with your former servicer.
*Inside Mortgage Finance, Jan-Jun 2022
Last reviewed and updated November 2022 by Freedom Mortgage Corporation.