What is the transfer period window in which no late fees can be charged to a borrower who pays to the original servicer before the due date?

• A. 60 Days
• B. 30 Days
• C. 90 Days
• D. 120 Days

Answer: (A)

During a mortgage servicing transfer, there is a 60-day transfer period. Within this window, no late fees can be charged if the borrower continues to pay the original servicer on or before the due date. This protection prevents penalties simply because the loan’s servicing is changing hands, and it helps ensure the borrower's payment history remains clean and accurately applied during the transition. The goal is to avoid confusion and misapplied payments as the new servicer comes online. After this 60-day window, normal late-fee rules apply if payments are late, unless another specific protection applies.