Regulation Z
Sec. 226.39 Mortgage transfer disclosures.
The Federal Reserve Board's Regulation Z (12 CFR Part 226) has been republished effective December 30, 2011, at 12 CFR Part 1026 as one of the regulations transferred to the Consumer Financial Protection Bureau under the Dodd-Frank Act. This section of the FRB regulation was republished as §1026.39 of the Bureau's regulation.
(a) Scope. The disclosure
requirements of this section apply to
any covered person except as otherwise
provided in this section. For purposes of
this section:
(1) A ‘‘covered person’’ means any
person, as defined in § 226.2(a)(22), that
becomes the owner of an existing
mortgage loan by acquiring legal title to
the debt obligation, whether through a
purchase, assignment or other transfer,
and who acquires more than one
mortgage loan in any twelve-month
period. For purposes of this section, a
servicer of a mortgage loan shall not be
treated as the owner of the obligation if
the servicer holds title to the loan, or
title is assigned to the servicer, solely
for the administrative convenience of
the servicer in servicing the obligation.
(2) A ‘‘mortgage loan’’ means any
consumer credit transaction that is
secured by the principal dwelling of a
consumer.
(b) Disclosure required. Except as
provided in paragraph (c) of this
section, each covered person is subject
to the requirements of this section and
shall mail or deliver the disclosures
required by this section to the consumer
on or before the 30th calendar day
following the date of transfer.
(1) Form of disclosures. The
disclosures required by this section
shall be provided clearly and
conspicuously in writing, in a form that
the consumer may keep. The disclosures
required by this section may be
provided to the consumer in electronic
form, subject to compliance with the
consumer consent and other applicable
provisions of the Electronic Signatures
in Global and National Commerce Act
(E-Sign Act) (15 U.S.C. 7001 et seq.).
(2) The date of transfer. For purposes
of this section, the date of transfer to the
covered person may, at the covered
person’s option, be either the date of
acquisition recognized in the books and
records of the acquiring party, or the
date of transfer recognized in the books
and records of the transferring party.
(3) Multiple consumers. If more than
one consumer is liable on the obligation,
a covered person may mail or deliver
the disclosures to any consumer who is
primarily liable.
(4) Multiple transfers. If a mortgage
loan is acquired by a covered person
and subsequently sold, assigned, or
otherwise transferred to another covered
person, a single disclosure may be
provided on behalf of both covered
persons if the disclosure satisfies the
timing and content requirements
applicable to each covered person.
(5) Multiple covered persons. If an
acquisition involves multiple covered
persons who jointly acquire the loan, a
single disclosure must be provided on
behalf of all covered persons.
(c) Exceptions. Notwithstanding
paragraph (b) of this section, a covered
person is not subject to the requirements
of this section with respect to a
particular mortgage loan if:
(1) The covered person sells, or
otherwise transfers or assigns legal title
to the mortgage loan on or before the
30th calendar day following the date
that the covered person acquired the
mortgage loan which shall be the date
of transfer recognized for purposes of
paragraph (b)(2) of this section;
(2) The mortgage loan is transferred to
the covered person in connection with
a repurchase agreement that obligates
the transferor to repurchase the loan.
However, if the transferor does not
repurchase the loan, the covered person
must provide the disclosures required
by this section within 30 days after the
date that the transaction is recognized as
an acquisition on its books and records;
or
(3) The covered person acquires only
a partial interest in the loan and the
party authorized to receive the
consumer’s notice of the right to rescind
and resolve issues concerning the
consumer’s payments on the loan does
not change as a result of the transfer of
the partial interest.
(d) Content of required disclosures.
The disclosures required by this section
shall identify the loan that was sold,
assigned or otherwise transferred, and
state the following:
(1) The name, address, and telephone
number of the covered person.
(i) If a single disclosure is provided on
behalf of more than one covered person,
the information required by this
paragraph shall be provided for each of
them unless paragraph (d)(1)(ii) of this
section applies.
(ii) If a single disclosure is provided
on behalf of more than one covered
person and one of them has been
authorized in accordance with
paragraph (d)(3) of this section to
receive the consumer’s notice of the
right to rescind and resolve issues
concerning the consumer’s payments on
the loan, the information required by
paragraph (d)(1) of this section may be
provided only for that covered person.
(2) The date of transfer.
(3) The name, address and telephone
number of an agent or party authorized
to receive notice of the right to rescind
and resolve issues concerning the
consumer’s payments on the loan.
However, no information is required to
be provided under this paragraph if the
consumer can use the information
provided under paragraph (d)(1) of this
section for these purposes.
(4) Where transfer of ownership of the
debt to the covered person is or may be
recorded in public records, or,
alternatively, that the transfer of
ownership has not been recorded in
public records at the time the disclosure
is provided.
(e) Optional disclosures. In addition
to the information required to be
disclosed under paragraph (d) of this
section, a covered person may, at its
option, provide any other information
regarding the transaction.
74 FR 60151, 11/20/2009, and 75 FR 58489, 9/24/2010
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