I would like to know an answer as well. We need to update our software so we have the new form and our systems administrator is out right now and not sure how long she will be out of the bank.

I would use the new form, even if you had to make it yourself from the model.

Do you have a copy I could look at?

I made two version for our bank, one that we would use for portfolio loans, and one our brokers would use. If you PM me, I can help you out!

SERVICING DISCLOSURE STATEMENT NOTICE TO FIRST LIEN MORTGAGE LOAN APPLICANTS: THE RIGHT TO COLLECT YOUR MORTGAGE LOAN PAYMENTS MAY BE TRANSFERRED


You are applying for a mortgage loan covered by the Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. 2601 et seq.). RESPA gives you certain rights under Federal law. This statement describes whether the servicing for this loan may be transferred to a different loan servicer. ``Servicing'' refers to collecting your principal, interest, and escrow payments, if any, as well as sending any monthly or annual statements, tracking account balances, and handling other aspects of your loan. You will be given advance notice before a transfer occurs.



Servicing Transfer Information

The Peoples State Bank may assign, sell or transfer the servicing of your loan to another servicer any time while the loan is outstanding.

We have always provided two Servicing Disclosure Statements with signature lines to applicants....one to be signed and retained in file and one for the applicant to keep.

As per discussion a few post above this, I am considering NOT requiring a signed form in file. So, if we can demonstrate to examiners that a Servicing Disclosure Statement is automatically included in our application packets that are given to applicants, that should be sufficient? All of our applications and disclosure forms are in-house forms and when a lender needs a certain application form, he or she selects it and ALL required disclosures print out with the application (other than the ARM disclosure and the HELOC application disclosure). It's even included with application packets that are typically second lien transactions such as home improvement loan applications and home improvement loan applications.

But do we need to maintain in file, a copy of the Servicing Disclosure that was given to the applicant. That seems kind of silly to me.

I would contact your vendors. That's what you pay them for.

I don't believe you can use the "old" form after 1/16 as the regulation changed. I don't think an examiner is going to get excited about it, but RESPA now provides a new disclosure with new rules. You should go with them.

We have the new servicing disclosure ready to download or upload (whichever is the correct term) from our vendor.

We are doing as Dans' example above. We are not getting signatures nor initials but we are putting a copy of the disclosure in the loan file.

January 16,2009 is the magical date.

Is the requirement to mail the servicing disclosure to each applicant if they list different addresses new?

No, but I never saw it enforced before. Maybe it won't be now either.

No

I just received an update from the Bankers Compliance and here is the link to the sample disclosure they have made available for use. We have the ability to develop our own "free form document" in our loan documentation software so this is what we are using until the software vendor releases the new disclosure.

http://www.bankerscompliance.com/assets/files/articles/Servicing%20Disclosure%20Statement.doc

Thanks David.

1/16/09 is the magic date, but our vendor changed the disclosure as of today (1/13/09). Where can I find the verbiage in the change in HUD's Reg X (or notification of the change) that tells us the details of when we have to change the form?

I need some clarification....the changes to the servicing disclosure is to the "initial" servicing disclosure.

There has NOT been any changes to the Notice of Assignment, Sale, or Transfer of Servicing Right........correct?

Thanks

Gertie - I believe that is the same document.

We're using the new mortgage servicing disclosure provided by our forms vendor. It includes three boxes under Servicing Transfer Information that coincide with the model language.

_ We may assign, sell, or transfer the servicing of your loan while the loan is outstanding.
_ We do not service mortgage loans of the type for which you applied. We intend to assign, sell, or transfre the servicing of your mortgage loan before the first payment is due or
_ The for which you have applied will be serviced at this financial institution and we do not intend to sell, transfer or assign the servicing of the loan.

I thought this was going to be easy and that we would just mark the first box. However, I'm getting some disagreement on this from those who feel that as our banks service their own loans with the exception of portfolio loans which are serviced by our mortgage company affiliate that we should mark the third box. Am I wrong? Could we mark both boxes? The concern is with the word "may" in the first box. If we always do (with the exception of the portfolio loans), then we probably wouldn't want to go with "may". It's not a custom form, so we can't revise it.

From reading this thread it appears we probably should mark the third box. Would that be correct?

Also, our forms vendor provided signature lines and because of this we would require a signature.

Gerti, the Servicing Disclosure is NOT the same document as the Notice of Assignment, Sale or Transfer. The Servicing Disclosure is provided at the time of application. The Notice is part of the closing package. Both say basically the same thing but it's one of those do it twice documents.

Gem, if you don't like the form your vendor provided, don't use it! As stated above, you can put the Servicing Disclosure on your letterhead. It only has to have the line you want on it, not all three choices. If you think you will have trouble getting signatures, then leave that off the form you create.

Gerti- sorry for the wrong answer. Should have doublechecked before I responded.

Truffle - we're basically "mandated" to use our vendor's forms since "that's what we pay them for" so customizing it is not an option. I just want to be sure we're filling it out correctly.

Do clients have to sign the new servicing disclosure?

No, that was requirement was removed from the reg.

You're welcome.

Our loan processing software has not yet been updated with the new form. I've put it out there on our intranet site. I've told the loan officers about the change in the form and the change in the time frame to provide the form. They're still expected to have it signed and retain it in the file - at least until we can be sure that they are providing the correct form and are understanding the time frame. Once they are doing it correctly - I'll change that to a new box on the loan checklist that it was provided and nix the signature requirement in our shop. I find this works best for our group.

I just tell'em what to do and then hold my breath.

You'll never have 100% compliance regardless of your method. But I guess certain methods might be considered as damage control.

I would like to read the full revision where can I find it? When i got to FDIC website it doesn't have updated information on the revision to the regulation. Can someone please direct me. Thanks

http://www.hud.gov/offices/hsg/sfh/res/finalrule.pdf

It's on hud's website.