Servicing Transfer Notice
by Lucy Griffin, BOL Guru
Guru Bios
Question: Do we have to give the servicing transfer notice on a second mortgage? Does it make any difference if the mortgage is closed-end and not a line of credit?
Answer: The answer to your first question is no. The servicing transfer notices must be given on first trust loans. They are not required for loans that will be secured by subordinate liens. The servicing transfer rule does not apply to HELOC's, regardless of their lien position so, because the HELOC would be exempt from the notice anyway, there would be no need for the servicing transfer notice in either case.
Copyright © 2004 Compliance Action. Originally appeared in Compliance Action, Vol. 9, No. 2, 3/04
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