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A servicing transfer takes effect March 15th. The borrower sends their April payment to the old servicer on April 10th. The new servicer charges a $50 late fee. Is this permitted?

Federal Mortgage Law · 24% of the SAFE exammedium

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Correct answer: No — April 10th is within the 60-day grace period, so no late fee can be charged

The 60-day grace period runs from March 15 through May 14. April 10 falls squarely within this window. The new servicer CANNOT charge a late fee on a payment that was sent on time to the old servicer during the 60-day period. This is true regardless of whether the old servicer actually forwarded the payment. The protection is automatic — the borrower acted in good faith by paying on time, even if to the wrong servicer.

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