After transferring a loan, how many days does a servicer have to notify the borrower in writing?

When a loan is transferred to a new servicer, federal regulations require that the borrower be notified in writing within a specific timeframe. The correct timeframe is 15 days after the transfer occurs. This requirement is outlined in the Real Estate Settlement Procedures Act (RESPA), which is designed to ensure that borrowers are kept informed about their loan and can address any questions or concerns they might have promptly.

This 15-day window gives borrowers adequate notice to understand who will be handling their loan and provides them an opportunity to communicate if there are any discrepancies or issues regarding the servicing of their mortgage. This notification is crucial for maintaining transparency in the mortgage process, helping to ensure that borrowers are aware of whom they should contact for payments or support.

While the other timeframes may seem plausible, only the 15-day period aligns with regulatory standards, as the shorter timeframes would not give sufficient opportunity for borrowers to adapt to the changes in their mortgage servicing.