If we are acquiring a failed instition, how should the Notice of Assignment, Sale or Transfer of Servicing Rights disclosure look. Specifically, do I just eliminate the language about the current servicer and have a disclosure that has an effective date of the take over date and that all correspondence should be sent to the purchsing bank?

bump!

Becky, I have the same question...did you get an answer?

Same question with answers here.

Thanks Deena...but can you point me to the model form, I can't seem to find it. Will it be one notice that combines information for REG Z and RESPA requirement?

Also, I am confused about the difference between REG Z 226.39 notice and RESPA's 3500.21 notice. Can you help?

The Reg. Z notice under 226.39 must be sent to the consumer by the entity that purchased the covered loan. The Reg. X notice is sent when the servicing is transferred. So if you sell a loan to FHLMC and your bank retains the servicing, then FHLMC has the obligation to send the customer the Reg. Z notice. There is no requirement for the Reg. X notice since the servicing wasn't transferred. If servicing is transferred, then both parties can send the Reg. X notice or one party can send a joint notice.

ok so if you are the purchaser of a failed bank, you have the obligation to send both notices, right?

Does anyone have a sample of a combined Reg X & Reg Z form?

Arizona, I could be wrong, but I am thinking that we are required to send seperate notices. Maybe one of the experts can give us some guidance.

I am no expert but I thought in the FRB webinar yesterday, they said the RESPA and Reg Z transfer disclosures could be combined. You can view and listen to the presentation at www.consumercomplianceoutlook.org under Compliance Hot Topics. I have not found examples of combined notices. E-fannie has a sample of ownership transfer notice on their website for ownership only.

In comparing the information required for each notice, the Reg Z notice seems to require this in addition to the RESPA requirements:

(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.