(a) Scope. The disclosure requirements of this section apply to any covered
person except as otherwise provided in this section. For purposes
of this section:
(1) A
“covered person” means any person, as defined in section 1026.2(a)(22),
that becomes the owner of an existing mortgage loan by acquiring legal
title to the debt obligation, whether through a purchase, assignment
or other transfer, and who acquires more than one mortgage loan in
any twelve-month period. For purposes of this section, a servicer
of a mortgage loan shall not be treated as the owner of the obligation
if the servicer holds title to the loan, or title is assigned to the
servicer, solely for the administrative convenience of the servicer
in servicing the obligation.
(2)
A “mortgage loan” means:
(i) An open-end consumer credit transaction
that is secured by the principal dwelling of a consumer; and
(ii) A closed-end consumer credit transaction
secured by a dwelling or real property.
(b) Disclosure required. Except
as provided in paragraph (c) of this section, each covered person
is subject to the requirements of this section and shall mail or deliver
the disclosures required by this section to the consumer on or before
the 30th calendar day following the date of transfer.
(1) Form
of disclosures. The disclosures required by this section shall
be provided clearly and conspicuously in writing, in a form that the
consumer may keep. The disclosures required by this section may be
provided to the consumer in electronic form, subject to compliance
with the consumer consent and other applicable provisions of the Electronic
Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C.
7001 et seq.).
(2) The date of transfer. For purposes of this
section, the date of transfer to the covered person may, at the covered
person’s option, be either the date of acquisition recognized in the
books and records of the acquiring party, or the date of transfer
recognized in the books and records of the transferring party.
(3) Multiple
consumers. If more than one consumer is liable on the obligation,
a covered person may mail or deliver the disclosures to any consumer
who is primarily liable.
(4) Multiple transfers. If a mortgage loan
is acquired by a covered person and subsequently sold, assigned, or
otherwise transferred to another covered person, a single disclosure
may be provided on behalf of both covered persons if the disclosure
satisfies the timing and content requirements applicable to each covered
person.
(5) Multiple covered persons. If an acquisition involves multiple
covered persons who jointly acquire the loan, a single disclosure
must be provided on behalf of all covered persons.
(c) Exceptions. Notwithstanding paragraph
(b) of this section, a covered person is not subject to the requirements
of this section with respect to a particular mortgage loan if:
(1) The covered person sells,
or otherwise transfers or assigns legal title to the mortgage loan
on or before the 30th calendar day following the date that the covered
person acquired the mortgage loan which shall be the date of transfer
recognized for purposes of paragraph (b)(2) of this section;
(2) The mortgage loan is transferred to
the covered person in connection with a repurchase agreement that
obligates the transferor to repurchase the loan. However, if the transferor
does not repurchase the loan, the covered person must provide the
disclosures required by this section within 30 days after the date
that the transaction is recognized as an acquisition on its books
and records; or
(3) The covered
person acquires only a partial interest in the loan and the party
authorized to receive the consumer’s notice of the right to rescind
and resolve issues concerning the consumer’s payments on the loan
does not change as a result of the transfer of the partial interest.
(d) Content of required disclosures. The disclosures required by this section shall identify the mortgage
loan that was sold, assigned or otherwise transferred, and state the
following, except that the information required by paragraph (d)(5)
of this section shall be stated only for a mortgage loan that is a
closed-end consumer credit transaction secured by a dwelling or real
property other than a reverse mortgage transaction subject to section
1026.33 of this part:
(1)
The name, address, and telephone number of the covered person.
(i) If a single disclosure
is provided on behalf of more than one covered person, the information
required by this paragraph shall be provided for each of them unless
paragraph (d)(1)(ii) of this section applies.
(ii) If a single disclosure is provided
on behalf of more than one covered person and one of them has been
authorized in accordance with paragraph (d)(3) of this section to
receive the consumer’s notice of the right to rescind and resolve
issues concerning the consumer’s payments on the loan, the information
required by paragraph (d)(1) of this section may be provided only
for that covered person.
(2) The date of transfer.
(3) The
name, address and telephone number of an agent or party authorized
to receive notice of the right to rescind and resolve issues concerning
the consumer’s payments on the loan. However, no information is required
to be provided under this paragraph if the consumer can use the information
provided under paragraph (d)(1) of this section for these purposes.
(4) Where transfer of ownership of
the debt to the covered person is or may be recorded in public records,
or, alternatively, that the transfer of ownership has not been recorded
in public records at the time the disclosure is provided.
(5) Partial payment
policy. Under the subheading “Partial Payment”:
(i) If periodic payments that are
less than the full amount due are accepted, a statement that the covered
person, using the term “lender,” may accept partial payments and apply
such payments to the consumer’s loan;
(ii) If periodic payments that are less
than the full amount due are accepted but not applied to a consumer’s
loan until the consumer pays the remainder of the full amount due,
a statement that the covered person, using the term “lender,” may
hold partial payments in a separate account until the consumer pays
the remainder of the payment and then apply the full periodic payment
to the consumer’s loan;
(iii)
If periodic payments that are less than the full amount due are not
accepted, a statement that the covered person, using the term “lender,”
does not accept any partial payments; and
(iv) A statement that, if the loan is
sold, the new covered person, using the term “lender,” may have a
different policy.
(e) Optional disclosures. In addition to the
information required to be disclosed under paragraph (d) of this section,
a covered person may, at its option, provide any other information
regarding the transaction.
(f) Successor
in interest. If, upon confirmation, a servicer provides a confirmed
successor in interest who is not liable on the mortgage loan obligation
with a written notice and acknowledgment form in accordance with Regulation
X, section 1024.32(c)(1) of this chapter, the servicer is not required
to provide to the confirmed successor in interest any written disclosure
required by paragraph (b) of this section unless and until the confirmed
successor in interest either assumes the mortgage loan obligation
under State law or has provided the servicer an executed acknowledgment
in accordance with Regulation X, section 1024.32(c)(1)(iv) of this
chapter, that the confirmed successor in interest has not revoked.
