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#2145941 - 09/13/17 04:33 PM Mortgage Loan Servicing Transfer
ComplyEase Offline
Junior Member

Registered: 10/29/15
Posts: 37
We are purchasing some loans from a major servicer and the servicing transfer notice the major servicer provided to their customer states that mortgage payments automatically deducted from their account will be discontinued as of the transfer date. My question is does comment (c) below from RESPA cover automatic payments? Is the answer different if the deposit account is at the same bank as the loan or another bank?

(c) Borrower payments during transfer of servicing. (1) Payments not considered late. During the 60-day period beginning on the effective date of transfer of the servicing of any mortgage loan, if the transferor servicer (rather than the transferee servicer that should properly receive payment on the loan) receives payment on or before the applicable due date (including any grace period allowed under the mortgage loan instruments), a payment may not be treated as late for any purpose

Mortgage Servicing Rules
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#2146017 - 09/14/17 09:52 AM Re: Mortgage Loan Servicing Transfer [Re: ComplyEase]
Inherent_Risk Offline

Registered: 01/17/17
Posts: 66
It's not late if they receive a payment, but it doesn't require them to continue to send or request payments.