Not for a payment you sent to the old servicer on time during the 60 days after the transfer. Federal law says such a payment may not be treated as late for any purpose, which includes credit reporting, and the servicer may not charge a late fee for it.
Mortgage servicing is often sold or transferred, sometimes more than once over the life of a loan. Payments can get lost in the handoff, and that can lead to false late payments on your credit report.
The 60-day protection
The Real Estate Settlement Procedures Act (RESPA) provides that during the 60-day period beginning on the effective date of a servicing transfer, if you send a payment to the old servicer and it is received before the due date:
- The new servicer may not charge a late fee for it, and
- The payment may not be treated as late for any other purpose.
Reporting that payment as late to a credit bureau would conflict with this rule and can make the report inaccurate under the FCRA.
Notice of the transfer
You should receive written notice of a servicing transfer. The old servicer generally must notify you at least 15 days before the transfer takes effect, and the new servicer must notify you within 15 days after. These notices tell you where to send payments and who to contact.
After the 60 days
Once the grace period ends, payments sent to the wrong servicer may be treated as late. Still, any late payment reported must be accurate. If your payment was received on time by the correct servicer, it should not be reported late.
What to do
- Find the transfer notices and the effective date of the transfer.
- Gather proof of when your payment was sent and when it cleared, and to which servicer.
- Send a written dispute to the new servicer, and dispute the late payment with each credit bureau, attaching your proof and the transfer notice.
- Watch for a second tradeline from the old servicer that still shows a balance after the transfer.
If a servicer keeps reporting a late payment you made on time during a transfer, a free case review can help, with no fee unless we win.
Related
Sources
- 12 U.S.C. § 2605(b)-(d) (Cornell LII)
- 15 U.S.C. § 1681s-2(a)(1)-(2) and (b) (Cornell LII)
- 12 CFR § 1022.43 (eCFR): direct disputes
Updated November 2026. This page is general information, not legal advice.