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Question:

Does the CFPB have specific requirements regarding the content included in notices of servicing transfers?

Answer:

Yes. In Section § 1024.33, Paragraph 33(b)(4) of the Real Estate Settlement Procedures Act (Regulation X), the CFPB requirements state, “The notices of transfer shall include the following information:

• The effective date of the transfer of servicing.
• The name, address, and a collect call or toll-free telephone number for an employee or department of the transferee servicer that can be contacted by the borrower to obtain answers to servicing transfer inquiries.
• The name, address, and a collect call or toll-free telephone number for an employee or department of the transferor servicer that can be contacted by the borrower to obtain answers to servicing transfer inquiries.
• The date on which the transferor servicer will cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments. These dates shall either be the same or consecutive days.
• Whether the transfer will affect the terms or the continued availability of mortgage life or disability insurance, or any other type of optional insurance and any action the borrower must take to maintain such coverage; and
• A statement that the transfer of servicing does not affect any term or condition of the mortgage loan other than terms directly related to the servicing of the loan.”

The full list of additional CFPB mortgage servicing transfers requirements are outlined in the Real Estate Settlement Procedures Act (Regulation X).