Servicing Transfer Provision of RESPA Act

Question: Would you direct me to the amendment to RESPA that dropped the signature requirement and reduced the disclosure to a sentence or two for the Transfer of Servicing Notice?

Answer: Congress changed the act, making significant reductions to the initial notice requirement. Now the act only requires a quick statement which can go with the GFE. Unfortunately, HUD has not bothered to clean up their regulation, so don't look at the regulation. Instead, look at the servicing transfer provision of the act itself. What is stated there is all that is required now. The section of the act is 6(a). If your examiner has questions, point them to the act and also point out that the change was made to the act after the regulation was issued.

Copyright © 2005 Compliance Action. Originally appeared in Compliance Action, Vol. 10, No. 15, 12/05