Selling Consumer Loans - Notices Required
Answer by Dan Persfull, BOL Guru Guru Bios
Question: When selling consumer loans, what notices are required (and their required time lines)? Are there any special notices required by the seller or purchaser of those loans?
Answer: If the loans are not subject to RESPA there are no federal requirements that I'm aware of. However, there could be some state requirements and/or loan contract requirements.
Editor's note: Our thanks to Cindy, who added this important information about selling student loans: Lenders can sell federal student loans under the Family Federal Educational Loan Program (FFELP). They have to send a notice to borrowers per federal regulations under the Higher Education Act of 1965 within 45 days after the transfer/sale of the loan. The notice is sent by both lenders. [§682.208(e)(1)(i)]
First published on BankersOnline.com 4/21/08; Updated 4/22/08
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