Goodbye Letter

Goodbye letter is the notice sent by the outgoing loan servicer to the borrower informing them that their mortgage servicing is being transferred to a new company. Under RESPA, the outgoing servicer must send this notice at least 15 days before the effective date of the servicing transfer. The letter identifies the new servicer, provides the transfer effective date, explains where to send payments during the transition, and includes contact information for both the outgoing and incoming servicers.

In the secondary mortgage note market, the goodbye letter is a required compliance step whenever an investor sells a loan or moves servicing between companies. It works in tandem with the hello letter sent by the incoming servicer — together, these two notices ensure the borrower knows who now holds their loan and where to direct payments. Failure to send a proper goodbye letter can create borrower confusion, misdirected payments, and regulatory exposure under RESPA. For note investors acquiring loans, confirming that the seller's servicer has sent (or will send) the goodbye letter is an important part of the post-closing loan boarding process.