Good Morning,

I hope all is well.
I would like to clarify if there is a difference in the requirements to send either letter to the borrower.

Upon my research, I think we should be sending the notice that applies directly to the exact type of transaction. (Purchase=Ownership; MSR only; Servicing)

Notice of Transfer of Mortgage Loan Ownership (Servicer Requirements for Supporting Section 404 Borrower Notification)
https://www.consumerfinance.gov/eregulations/1026-39/2015-18239#1026-39-a

Notice of Transfer of Servicing.
https://www.consumerfinance.gov/eregulations/1024-33/2013-24521

They are two separate requirements, but if you are the purchaser of a loan that has to provide the notice under Reg Z 1026.39, and you are also taking over servicing of the loan, you'll also have to provide the Reg X Notice of Transfer of Servicing as a transferee servicer (unless you've arranged for the transferor servicer to provide both sides of the notice).

John, in the case of an Acquisition should the notice required by Reg Z 1026.39 be sent by the acquiring bank? Loan payments will continue to be accepted at the same locations/addresses as before the acquisition.

The acquiring bank is the party responsible for the Reg Z notice. The fact that there's no change in payment location is irrelevant for this notice.

Second what John said. If you acquire the loan, then you are subject to the 1026.39 notice requirements. If you also acquire the servicing and certain information changes, such as the loan number, and obviously if the actual servicer changes (where you send payments, etc.), then you are subject to the 1024.33 notice requirements. Also, if you obtain the master servicing rights, you are considered to have "established a customer relationship" according to the Privacy Regulation. You are required to provide the 1016.4 notice within a "reasonable time," if the loan was purchased not at the customer's election.

Reviving this - what are master servicing rights? We use a company to manage servicing mortgage loans, but we own the loans. Does that make them the master servicer?

Master servicer means the owner of the right to perform servicing. A master servicer may perform the servicing itself or do so through a subservicer.