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#126683 - 10/29/03 09:10 PM Mortgage Servicing Disclosure Statment
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
For those of you that have the abbreviated Servicing Disclosure Statement included on your GFE, what are you giving to customers when application is made in person? Are you actually using the long version or have you created an abbreviated version to hand to the customer?

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#126684 - 10/29/03 09:14 PM Re: Mortgage Servicing Disclosure Statement
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,463
Bloomington, IN
Hmmm, did I start something in the other thread?

I'd like to piggy back on this question, as I am in the process of converting to the "short form" also.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#126685 - 10/29/03 09:35 PM Re: Mortgage Servicing Disclosure Statement
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
LOL Dan! I just had not got to that part of my audit yet!

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#126686 - 10/29/03 09:38 PM Re: Mortgage Servicing Disclosure Statement
Anonymous
Unregistered

Quote:

I'd like to piggy back on this question, as I am in the process of converting to the "short form" also.




Ok, I must have been napping when this topic or change came about. You can now put the mortgage servicing disclosure on the GFE??????????????????????

Oh my gosh, I need more information...Where can I find it....

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#126687 - 10/29/03 10:14 PM Re: Mortgage Servicing Disclosure Statement
MackenzieS Offline
Diamond Poster
MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
Hee hee hee. Its a little known fact that you have to go back to 1996 to find out about. Heres the history folks:

Back in 1996, President Clinton signed the Economic Growth nd Regulatory Paperwork Reduction Act (EGRPRA). Section 2103 of this act affected Section 6(a) of the Real Estate Settlement Procedures Act of 1974. Now, the kicker here is that the corresponding regulation (what we know as Reg X) was never changed. Can we say OOPPS!?

Anyway, the amendment is what streamlined the the required disclosure to mortgage loan applicants in regards to the future servicing of their loans. It also eliminated the need for the applicant to sign and acknowledge the receipt of the disclosure.

So, the statutory law was changed but the regulation never was. Capish? This is where the examiners and bankers keep getting into debates during exams. At our last compliance exam in 2002, the FDIC tried to cite us on this and I sent them packing with my supporting documentation.

Currently our GFE has a simple two line statement: " Important notice when credit is extended. The servicing of this loanmay be assigned, sold or transferred toanother person at anytime while this loan is outstanding." THE END.

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#126688 - 10/29/03 10:17 PM Re: Mortgage Servicing Disclosure Statement
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,463
Bloomington, IN
Quote:

Oh my gosh, I need more information...Where can I find it....




You can do a search on "servicing disclosure" or "servicing transfer disclosure" and you'll get several hits.

Start here .
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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