PURCHASING LOANS WITHOUT TRANSFERING SERVICING

We are purchasing a pool of real estate mortgages without transferring the service. We are a small bank and are currently exempt from the servicing rules. How, if anything, does this affect our requirements? Besides obtaining the servicing agreement, what other steps we need to take?

A small creditor is not exempt from 1026.39 and the mortgage transfer disclosure rule.

Thank you, since we are not transferring the service in this purchase, do we still need to send this disclosure?

The purchaser of the loan sends the notice required by 1026.39, whether or not servicing is transferred.

Thank you John,

Is there any requirement to send the Privacy disclosure at this time as well?

For purposes of Regulation P, the customer relationship transfers with servicing rights. If there is no change in servicing involved, there's no requirement to send the new loan owner's privacy policy. §1016.4(c)(2).

Like the OP, we are purchasing our first group of mortgage loans where the original lender is retaining the servicing. The loans are apartment buildings (6+ units). As 1026.39 pertains to consumer mortgage transactions, it does not apply to our purchase, correct? Is it still a good idea to send a letter to inform the borrowers that we now own the loan? Or is that not material since we are not servicing the loans?