I am looking over some mortgage loans. I am fairly new to internal audit and loans are not my area expertise to say the least. I am looking at the Mortgage Disclosure Statement. We sell all of our mortgage loans. Should the MSDS have the information for our bank or for the lender that we are selling the loan to?

What information are you asking about? If you are referring to the percentage of loans sold that information is no longer required.

Do a search using the search term servicing transfer disclosure with my user name and you will find several previous disclosures.

You may also want to refer to this letter.

http://www.federalreserve.gov/boarddocs/caletters/2003/0309/caltr0309.htm

We still have the percentage of loans transferred on our MSDS. So, are you saying that should be taken off? If so, what should still be included on there?

If you have done the above search you would have found an example "short form" disclosure.

Servicing Transfer Disclosure

This disclosure is being given in compliance with Section 2605(a) of the Real Estate Settlement Procedures Act (RESPA).

The ABCDEF Bank may assign, sell or transfer the servicing of your loan to another servicer any time during the term of the loan.

Please contact us at the above address or telephone number if you have any questions concerning this disclosure.