Servicing Transfer Notice

Question: I have heard you say that there is something in the Federal Register that states that the Servicing Transfer Notice that we provide to mortgage applicants can now be a short statement rather than the lengthy form we have been providing. Could you give me the FR number that this appeared in? I can't seem to find it.

Answer: The reason you can't find it is that HUD buried it in its lengthy discussion of the Good Faith Estimate proposal. The statement was included almost as an aside. However, it stands, and is the only official recognition from HUD that the changes to the act itself operated to render the regulation's treatment obsolete. If you look very carefully at 67 FR 49137 in the third column, you will see: "Additionally, the Department plans to finalize the 1997 Section 6 transfer of servicing proposed rule; however, in the meantime the Section 6 language in the statute may be provided in conjunction with the GFE."

Copyright © 2005 Compliance Action. Originally appeared in Compliance Action, Vol. 10, No. 10, 9/05