Are there any regulatory restrictions affecting participating a consumer mortgage loan? Our note/mortgage permits the sale of all or partial interest in the note/mortgage.

No limitations, but it would be covered under 1026.39—Mortgage transfer disclosures.

Randy, in most participations, the originating bank retains a portion of the loan as well as the servicing of the loan. Do you think that would fall under the exception listed in 12 CFR 1026.39(c)(3)

As long as your participation agreement addressee those issues as to the responsible party, I think it would.