Notice of Servicing Transfer/Loss Mitigation

Posted By: SallyGirl

Notice of Servicing Transfer/Loss Mitigation - 05/20/21 07:14 PM

Can the transferor servicer's Notice of Servicing Transfer include the information that the borrower's loss mitigation application will be transferred to and continue with the new servicer?
Posted By: SallyGirl

Re: Notice of Servicing Transfer/Loss Mitigation - 05/20/21 08:15 PM

Any thoughts?
Posted By: Andy_Z

Re: Notice of Servicing Transfer/Loss Mitigation - 05/20/21 08:49 PM

There are specific requirements for servicing transfer notices but I'm not aware that there is any exclusion requirement of other information. Add to that the CFPB is REALLY emphasizing communication with mortgage borrowers right now and wants borrowers to understand what is happening with their loans and options on forbearance and loss mitigation programs, I can't imagine this would be a problem so long as it doesn't hide or conceal required information.

When a borrower's loan is transferred, if they are under any program or are wanting to be, I'm sure their first question will be on their status with the program. Answering it with the transfer notice makes perfect sense.
Posted By: SallyGirl

Re: Notice of Servicing Transfer/Loss Mitigation - 05/20/21 08:58 PM

Thank you Andy!!

The transferor service also included the Mini Miranda in the notice. Do you see an issue with this?
Posted By: Andy_Z

Re: Notice of Servicing Transfer/Loss Mitigation - 05/21/21 08:04 PM

I am considering the current environment of assistance and transparency with consumers. While I personally do not feel it should interfere with the information, providing too much or too many disclosures may begin to complicate the communication itself. I personally think it can be done, but needs proper attention so as to not bury any of these disclosures.

Some claims have been made that the mini-Miranda is actually an attempt at collection where there was none intended. So I would pay attention to the litigation and decide if the savings and potential confusion over content is worth it.

https://www.consumerfinancialservic...n-in-connection-with-collection-of-debt/