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#1118924 - 01/29/09 03:46 PM Mortgage Servicing Disclosure Statement
bls Offline
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Joined: Oct 2005
Posts: 138
Alabama
I understand that the RESPA rules in regards to the servicing disclosure statement has changed effective January 26, 2009. In reviewing the Federal Register, I noted that the notice is much more simple (thank goodness). But my question is, doesn't the old servicing disclosure still meet the regulatory requirements? I have been told that we have to start using the new form, but our forms provider has not yet updated our platform, and said it will not be updated until May.

In reading the register, under the section "Instructions to Preparer", it states "The model format may be annotated with further information that clarifies or enhances the model language." Since the old form provides the required language and actually now provides more information than required, would this not be a case in which further information is provided that enhances the model language? I agree that when the new form is available to us, we will begin using it, but in reading the Federal Register, I believe the old form is still sufficient. Any thoughts on this?

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Lending Compliance
#1118954 - 01/29/09 04:03 PM Re: Mortgage Servicing Disclosure Statement bls
Dan Persfull Online
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Quote:
. . . but our forms provider has not yet updated our platform, and said it will not be updated until May.

Any thoughts on this?


My thoughts would be that I'd be looking for new forms provider. Why is it taking them 4 months to update a regulatory form that went into effect by regulation on 1/16/2009.

The old disclosure as I recall does not "define" servicing as the new one does. I would have to say without that verbiage the old disclosure is not compliant. Just my opinion.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1119598 - 01/29/09 10:47 PM Re: Mortgage Servicing Disclosure Statement Dan Persfull
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
You can download a Word document of the SDS at our website: http://www.bankerscompliance.com/compliance-resources/free-downloads.htm

Also, read our 1/9/09 blog about servicer's not providing the disclosure: http://www.bankerscompliance.com/blog.htm

I'd be on the phone giving my vendor an ear-full. If they can't keep up with the requirements, why do you pay them?
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David Dickinson
http://www.bankerscompliance.com

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