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#20186 - 06/10/02 04:56 PM RESPA Servicing Transfers for mergers

Our bank is merging with another bank. This will have no impact on our existing mortgage customers except that the name of the bank will change. Do we need to send them a notice of servicing transfer under RESPA 3500.21? I understand that the customers of the other bank will need these notices because their account numbers will change, but I don't know how to interpret 3500.21(d) for our own customers.

(I originally posted this a few days ago on the General Discussion forum before I discovered the new Lending Compliance forum. So I'm reposting here since no one has responded yet.) Thank you.

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Lending Compliance
#20187 - 06/10/02 08:17 PM Re: RESPA Servicing Transfers for mergers
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
By now, you have seen the posts to your question on the General Forum. If Bank A and Bank B merge into Bank A's charter, with or without a name change, customers of Bank A don't need to receive a RESPA Servicer Change notice. You may elect to notify them of the name change so they can change how they make out their payment checks to you.

Bank B and Bank A will cooperate to issue a Servicer Change Notice to Bank B customers, I believe.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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