RESPA Verbiage on Servicing Disclosures

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Question:

Where would I find the verbiage in the RESPA guidelines that indicates that a First mortgage loan file only needs to document that the customer was provided the RESPA Servicing Disclosure within 3 days of application, and that the lender does not have to have it signed by the customer in order to close?

Answer:

This is part of the act itself. The act no longer requires the lengthy (14-inch) servicing transfer disclosure. HUD has stated that you can simply use the actual language of the act unless and until they revise their regulation.

First published on BankersOnline.com 6/12/06