New Reg Z Requirements-Mortgage Billing Statements

Answered by:

Question:

Per new Regulation Z requirements, if we are a bank that has under 1000 mortgage loans, are we exempt from sending out the mortgage billing statements and the new rate adjustment notices for adjustable-rate mortgages?

Answer:

The is no exemption from the revised requirements for ARM rate/payment adjustment notices under Regulation Z section 1026.20(c) and (d), regardless of the size or volume of the servicer.

Your bank may, however, qualify as a small servicer under section 1026.41(e)(4). It will depend upon the number of mortgage loans you and any affiliates service and whether you or an affiliate is either the creditor or assignee of every one of those loans. If you qualify as a small servicer, you won't have to comply with the provisions of section 1026.41, which includes the requirement for periodic statements (or conforming coupon books) for certain mortgage loans.