Notice mortgage loan sold or transferred

It seems we updated these disclous not too long ago. Does anyone know if something new has been added?



Federal Reserve Board Announces Final Rules Implementing New Disclosure Requirement Under the Truth in Lending Act. On August 16, the Federal Reserve Board (Board) announced final rules implementing a new disclosure requirement under a statutory amendment to the Truth in Lending Act (TILA). The new rules require that consumers receive notice when their mortgage loan has been sold or transferred. The requirement became effective in May 2009, upon enactment of the Helping Families Save Their Homes Act. Pursuant to that Act, a purchaser or assignee that acquires a mortgage loan to provide the required disclosures in writing within 30 days. The Board had previously published interim rules in November 2009, which were effective immediately, in order to provide compliance guidance to parties covered under the amendment. Covered parties may continue to follow the interim rules until January 1, 2011, the mandatory compliance date for the final rules. The Board also had provided an online publication for consumers titled, "What You Need to Know: New Rules for Mortgage Transfers," which explains what consumers can expect from their mortgage lenders regarding the new disclosure requirement. For a copy of the press release, please see http://www.federalreserve.gov/newsevents/press/bcreg/20100816c.htm.

http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20100816c1.pdf

Consumers can learn more about mortgage transfer disclosures by accessing a new online publication, "What You Need to Know: New Rules for Mortgage Transfers." It explains what consumers can expect from their mortgage lenders regarding notification of mortgage transfers.
Attachment (148 KB PDF)

Looks to be a whole new disclosure requirement. Not the servicing but when selling the ownership.

Talking off the top of my head....doesn't this stem from "servicing rights" being sold from entity to entity and so the homeowner always knows where to mail the payment (RESPA transfer of servicing notice). But there is not a similar rule for keeping the homeowner informed with respect to who owns the loan itself.

Am I on the right track?

I think you nailed it. It seems homeowners did not know how to locate the lender when falling behind on payments, escrows and possible Sheriff Sale.

Is there model language for this? Or can a quick "ABC Bank bought your loan, contact us at ...." in one paragraph suffice? (of course including all the required disclosures, identification of loan, etc, would be included)

I really didn't find much different in the final rules. It only required a couple of tweaks to our current notice.

Dani, I don't think there is model language. You just need to make sure the content requirements in 226.39(d) are met.

Is this notice different from the notice required under RESPA?

Yes. This one is required by Reg Z when the loan (not just the servicing) is sold or transferred. See 226.39

Whomever is the new covered person (owner of the loan) is required to send this notice within 30 days, with a few exceptions. I was hoping RESPA and Reg Z could mesh their individual notices into one, but it doesn't look that way.

Thanks everyone. It looks to me like the information required under this notice is really what would normally be sent in a welcome letter.