A servicer receiving a transferred loan must notify the borrower within how many days?

When a servicer receives a transferred loan, they are required by federal law to notify the borrower of the change in servicer. This notification must occur within a specific timeframe to ensure that borrowers are kept informed and can continue making their mortgage payments correctly.

The correct timeframe for notifying the borrower is 15 days after the transfer of the loan. This requirement is outlined in the Real Estate Settlement Procedures Act (RESPA), which serves to protect consumers in mortgage and real estate transactions. The 15-day period allows borrowers to receive timely updates on who will be servicing their loan, which is crucial information for maintaining their payment schedule and understanding where to send their payments.

This requirement helps prevent confusion or delays in payment processing as borrowers transition from one servicer to another. By establishing a clear notification timeline, the law aims to enhance transparency in the mortgage servicing process, ensuring borrowers have all the necessary information to manage their loans effectively.