The Federal Reserve Board approved another interim final rule to implement a recent statutory amendment requiring that notice be given to consumers when their mortgage loan has been sold or transferred. Yes, this is in addition to the Notice of Assignment, Sale or Transfer required by RESPA.  The new disclosure requirement became effective immediately upon enactment of the Helping Families Save Their Homes Act in May, 2009.  Under that act a purchaser or assignee that acquires a mortgage loan must provide the required disclosures in writing within 30 days.

 

The interim final rule on the new requirements, revising Regulation Z (Truth In Lending Act) is effective upon publication.  However, to allow time for any necessary operational changes compliance with the interim final rule is optional for 60 days.  During the 60-day period, parties that acquire a mortgage loan continue to be subject to the statute's requirements.

 

We are in the process of developing this new disclosure and will have available after the first of the year.