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#1099536 - 12/18/08 04:50 PM Re: Servicing Disclosure Revision upstateNY
Bullseye Offline
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Bullseye
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My notes say January 16, 2009. The GFE/HUD revisions are in 2010.

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Lending Compliance
#1099605 - 12/18/08 05:35 PM Re: Servicing Disclosure Revision upstateNY
waldensouth Offline
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waldensouth
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FINALLY ABOVE the gnat line
1-16-09
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#1099624 - 12/18/08 05:47 PM Re: Servicing Disclosure Revision waldensouth
Truffle Royale Offline

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FYI: Today's ABA bulletin contained the following:
Quote:
The Federal Reserve yesterday extended the comment deadline from Jan. 23 to Feb. 9 on its proposal to revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending). The revisions would implement the Mortgage Disclosure Improvement Act enacted in July as an amendment to the Truth in Lending Act.

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#1100213 - 12/19/08 03:44 PM Re: Servicing Disclosure Revision upstateNY
RobinB Offline
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Maryland
According to my compliance group the mandatory date for the Servicing Disclosure is January 16, 2009.

For the new GFE it is January 2010.

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#1101765 - 12/23/08 09:16 PM Re: Servicing Disclosure Revision Web
Ninky Offline
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Am I taking this language too literal? We portfolio all of our loans, no secondary market transactions for over 6 years. In this climate...who knows? But it is not our intent to ever sell, transfer or assign any of our loans. So, can we accurately state that we will be servicing this loan and do not INTEND to sell, transfer or assign? Is there any exposure down the road if something changes?

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#1101802 - 12/23/08 09:47 PM Re: Servicing Disclosure Revision Ninky
David Dickinson Offline
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Central City, NE
Yes, you should state you intend to service the loan. This is an estimate within 3 business days of application. Things might change. Your customer might be upset, but there's no regulatory exposure if you decide to sale/assign loans later.
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#1101964 - 12/24/08 02:03 PM Re: Servicing Disclosure Revision David Dickinson
Dan Persfull Offline
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Bloomington, IN
All of our loans are subject to the servicing being sold, although they may not be, therefore we are disclosing that the loan servicing may be sold at anytime during the life of the loan.
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#1104001 - 12/30/08 09:40 PM Re: Servicing Disclosure Revision Dan Persfull
Tesla Offline
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Dan- if you are saying "may assign..." are you just taking a box and showing the other options or is that just the only statement following the heading "SERVICING TRANSFER INFORMATION"?
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#1104010 - 12/30/08 09:48 PM Re: Servicing Disclosure Revision Tesla
Dan Persfull Offline
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Bloomington, IN
We're not showing the other choices on the form.
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#1104012 - 12/30/08 09:50 PM Re: Servicing Disclosure Revision Dan Persfull
Tesla Offline
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Cool! Thanks!
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#1105335 - 01/05/09 03:28 PM Re: Servicing Disclosure Revision upstateNY
ahkcompliance Offline
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Midwest
Does anyone know where I can get a sample form? We currently use ARTA for our loan forms? Does anyone know if the new form will be automtically updated with the new language?

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#1105341 - 01/05/09 03:34 PM Re: Servicing Disclosure Revision ahkcompliance
David Dickinson Offline
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Central City, NE
I would contact your Forms Provider.
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#1105346 - 01/05/09 03:41 PM Re: Servicing Disclosure Revision David Dickinson
ahkcompliance Offline
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Midwest
Do you have a sample form?

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#1105355 - 01/05/09 03:49 PM Re: Servicing Disclosure Revision ahkcompliance
Reads Regs Offline
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#1105470 - 01/05/09 05:44 PM Re: Servicing Disclosure Revision Web
babyboomer Offline
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Posts: 69
Oklahoma
I need some clarification as I am new to lending compliance:

The reg says the Servicing Disclosure is to be given at the time an application for a mortgage servicing loan is submitted, or within three days after submission of the application.

Is this an either or choice? Is it okay to always send it within three business days of submission even if it is a face-to-face application?

Does this disclosure requirement only apply to first mortgage loans (which could be sold on secondary market) or does it also include home improvement loans that might be a first lien?

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#1105517 - 01/05/09 06:26 PM Re: Servicing Disclosure Revision babyboomer
RR Joker Offline
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The Swamp
It appears to me that the requirement for giving at time of face-to-face no longer applies.


Whether sold on secondary market or not has no bearing on giving the disclosure. Servicing could be simply collecting the monthly P&I.
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#1105570 - 01/05/09 07:33 PM Re: Servicing Disclosure Revision ahkcompliance
pjs Offline
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Originally Posted By: ahk
Does anyone know where I can get a sample form? We currently use ARTA for our loan forms? Does anyone know if the new form will be automtically updated with the new language?


We have ARTA too and the new servicing disclosure has been updated.

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#1105658 - 01/05/09 09:28 PM Re: Servicing Disclosure Revision pjs
ahkcompliance Offline
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Midwest
We just had an external audit and our auditors noted that we did not disclose it at a face to face application. They recommend that we give the servicing disclosure at application or within 3 business days of a mail application.

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#1106112 - 01/06/09 06:19 PM Re: Servicing Disclosure Revision ahkcompliance
Lissa P. Offline
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Texas, USA
Is there any problem if we begin using the new form now? We don't need to wait until 1/16/09, do we?

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#1106170 - 01/06/09 07:07 PM Re: Servicing Disclosure Revision Lissa P.
Marnie Offline
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Nevada
I also plan to use it right away, so would like to know the answer to LissaJ's question too.

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#1106173 - 01/06/09 07:11 PM Re: Servicing Disclosure Revision Marnie
Dan Persfull Offline
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Bloomington, IN
We have been using the short form for over 3 years now. I just re-worded it to include the new language about servicing and have been using the update for about 3 or 4 weeks now.
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#1106317 - 01/06/09 09:08 PM Re: Servicing Disclosure Revision Dan Persfull
MarieR Offline
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Our vendor has not added the new language about servicing yet on the short form. Since the language is just a model, are we okay to use the short form without the added language until our vendor updates the form?
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#1106336 - 01/06/09 09:17 PM Re: Servicing Disclosure Revision MarieR
Dan Persfull Offline
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Bloomington, IN
You do not have to use the new form until 1/16.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1106360 - 01/06/09 09:30 PM Re: Servicing Disclosure Revision Dan Persfull
Lissa P. Offline
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Texas, USA
Well, that brings me to my new question. Our vendor has deleted a large portion of the sentence on the model disclosure that explains what "servicing" entails. The vendor states that their form is sufficient for compliance. So, should the language be verbatim when compared to the model? Or is the disclosure of intent sufficient?

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#1106436 - 01/06/09 10:44 PM Re: Servicing Disclosure Revision Lissa P.
Moman Offline
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Posts: 505
WA
OK! I need the difinitive answer. Is using the old form sufficient (overkill, but sufficient), or do we need to migrate to the new version with new language by 1/16/09? We have not yet heard from either of our two loan origination software vendors on the new document!

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