Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part IV - Bureau of Consumer Credit Agencies › Chapter 59 - MORTGAGE SERVICING › Section 59.5 - Mortgage servicing transfers

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Servicing disclosure
				statement.
Within three days (excluding legal public holidays,
				Saturdays, and Sundays) after a person applies for a reverse mortgage
				transaction, the lender, mortgage broker who anticipates using table funding,
				or dealer in a first-lien dealer loan shall provide to the person a servicing
				disclosure statement that states whether the servicing of the mortgage loan may
				be assigned, sold, or transferred to any other person at any time. Appendix
				MS-1 of 12 CFR Part 1024 , Subpart C (relating to mortgage servicing) contains
				a model form for the disclosures required under this paragraph (a). If a person
				who applies for a reverse mortgage transaction is denied credit within the
				three-day period, a servicing disclosure statement is not required to be
				delivered.
(b)
Notices of
				transfer of loan servicing.
(1)
Requirement for notice.
Except as provided in paragraph
				(b)(2) of this section, each transferor servicer and transferee servicer of any
				mortgage loan shall provide to the borrower a notice of transfer for any
				assignment, sale, or transfer of the servicing of the mortgage loan. The notice
				must contain the information described in paragraph (b)(4) of this section.
				Appendix MS-2 of 12 CFR Part
				1024, Subpart C contains a model form for the
				disclosures required under this paragraph (b).
(2)
Certain transfers
				excluded.
(i) The following
				transfers are not assignments, sales, or transfers of mortgage loan servicing
				for purposes of this section if there is no change in the payee, address to
				which payment must be delivered, account number, or amount of payment due:
(A) A transfer between affiliates;
(B) A transfer that results from mergers or
				acquisitions of servicers or subservicers;
(C) A transfer that occurs between master
				servicers without changing the subservicer;
(ii) The Federal Housing Administration (FHA)
				is not required to provide to the borrower a notice of transfer where a
				mortgage insured under the National Housing Act is assigned to the
				FHA.
(3)
Time of
				notice.
(i)
In general.
Except as provided in paragraphs (b)(3)(ii) and (iii) of this
				section, the transferor servicer shall provide the notice of transfer to the
				borrower not less than 15 days before the effective date of the transfer of the
				servicing of the mortgage loan. The transferee servicer shall provide the
				notice of transfer to the borrower not more than 15 days after the effective
				date of the transfer. The transferor and transferee servicers may provide a
				single notice, in which case the notice shall be provided not less than 15 days
				before the effective date of the transfer of the servicing of the mortgage
				loan.
(ii)
Extended time.
The notice of transfer shall be provided to the borrower by the
				transferor servicer or the transferee servicer not more than 30 days after the
				effective date of the transfer of the servicing of the mortgage loan in any
				case in which the transfer of servicing is preceded by:
(A) Termination of the contract for servicing
				the loan for cause;
(B)
				Commencement of proceedings for bankruptcy of the servicer;
(C) Commencement of proceedings by the FDIC
				for conservatorship or receivership of the servicer or an entity that owns or
				controls the servicer; or
(D)
				Commencement of proceedings by the NCUA for appointment of a conservator or
				liquidating agent of the servicer or an entity that owns or controls the
				servicer.
(iii)
Notice provided at settlement.
Notices of transfer provided at
				settlement by the transferor servicer and transferee servicer, whether as
				separate notices or as a combined notice, satisfy the timing requirements of
				paragraph (b)(3) of this section.
(4)
Contents of notice.
The
				notices of transfer shall include the following information:
(i) The effective date of the transfer of
				servicing;
(ii) 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;
(iii) 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;
(iv) 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;
(v) 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
(vi)
				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.