Servicing-transfer notice from the prior servicer telling the borrower account handling is moving.
A goodbye letter is a servicing-transfer notice from the prior servicer telling the borrower that account handling is moving to another company.
Goodbye letter matters because it is often the borrower’s first clear signal that the company collecting payments is changing. The borrower needs to know when the prior servicer stops handling the account and where to look for the new payment instructions.
It also matters because borrowers may mistake the letter for a scam or collection notice if they do not understand servicing transfers. The letter should be read alongside any communication from the new servicer.
Borrowers encounter a goodbye letter after closing when servicing is transferring away from the company that has been managing the loan account.
The term becomes practical when the borrower is preparing the next payment, reviewing autopay, or trying to reconcile activity around the Effective Transfer Date.
| Notice or term | Borrower-facing role |
|---|---|
| Goodbye letter | Message from the prior servicer saying servicing is leaving |
| Welcome Letter | Message from the new servicer saying servicing is arriving |
| Servicing Transfer Notice | Broader notice category explaining the handoff |
| Mortgage Statement | Regular account statement, not the transfer notice itself |
A borrower receives a letter from the current servicer saying the loan account will be serviced by a different company beginning on a stated date. That borrower-facing departure notice is commonly called a goodbye letter.
Goodbye letter differs from Welcome Letter because the goodbye letter comes from the prior servicer, while the welcome letter comes from the company taking over.
It differs from Servicing Transfer because the transfer is the account-management event, while the goodbye letter is one communication about that event.
It also differs from Late Notice because a late notice concerns a past-due payment problem, while a goodbye letter concerns a servicing handoff.