If we do decide to take the big plunge and just include the required language on the GFE instead of providing the full disclosure, what about the signature requirement? You know that the servicing disclosure is one of the few documents that must be signed by the customer and in the file?

When the statute was amended it did away with the signature requirement also.

rlcarey,

Could you show me that? If we didn't have to collect signatures that would solve a few headaches.

Thanks

Current statute:

Sec. 2605. Servicing of mortgage loans and administration of escrow accounts


(a) Disclosure to applicant relating to assignment, sale, or transfer of loan servicing

Each person who makes a federally related mortgage loan shall disclose to each person who applies for the loan, at the time of application for the loan, whether the servicing of the loan may be assigned, sold, or transferred to any other person at any time while the loan is outstanding.

Amendments

1996--Subsec. (a). Pub. L. 104-208 amended heading and text of subsec. (a) generally. Prior to amendment, text consisted of pars. (1) to (3) relating to requirements for lenders of federally related mortgage loans to disclose to applicants whether servicing of such loan may be assigned, sold, or transferred, directed Secretary to develop model disclosure statement, and required signature of applicant on all such disclosure statements.

I just attended the ABA Compliance Exec Committee meeting in Washington where 3 HUD officials discussed Respa Reform issues with us...I specifically asked them if their intent in the 7/02 Fed Register (which was to finalize a 1997 proposal) was for us to eliminate the current Mtg Servicing Disclosure and to put a short disclosure on the GFE - or to use the current Mortgage Servicing Disclosure until the reform was finalized OR to use a modified version of the Mortgage Servicing Disclosure which has all the elements of the current one, minus ONLY the percentage disclosures and the acknowledgement...

They all 3 said we should be using the FULL disclosure or a modified vesion that does not have the percentages and acknowledgment (i.e. We still need to provide the "sale of servicing" phrases and error resolution information among other things on the current disclosure statement).

FYI - the FDIC in Kansas City (and hopefully in Washington) has said THEY are requiring use of the CURRENT form until this is all settled.

Individuals from HUD: Mark Calabria, Deputy Asst Sec. for Office of Regulatory Affairs; Ken Markison, Asst Gen Counsel for GSA/RESPA Division and John White, Counsel.

Opinions are mine and not necessarily those of my employer.

Could you please give me more information about the modified short form option that eliminates the percentages. I have just discovered that our mortgage area continued to use the long form but eliminated the percentages. I am assuming that is a problem. Can someone please help me sort this out. I would like to know when the percentages are required in today's environment.
Thanks for your help.

The percentages are no longer required. See the statute citation above.