(a) Disclosure
requirements.
(1) Form of disclosures. Except as otherwise
provided in this subpart, disclosures required under this subpart
must be clear and conspicuous, in writing, and in a form that a recipient
may keep. The disclosures required by this subpart may be provided
in electronic form, subject to compliance with the consumer consent
and other applicable provisions of the E-Sign Act, as set forth in
section 1024.3. A servicer may use commonly accepted or readily understandable
abbreviations in complying with the disclosure requirements of this
subpart.
(2) Foreign language disclosures. Disclosures required under this
subpart may be made in a language other than English, provided that
the disclosures are made available in English upon a recipient’s request.
(b) Additional
information; disclosures required by other laws. Unless expressly
prohibited in this subpart, by other applicable law, such as the Truth
in Lending Act (15 U.S.C. 1601 et seq.) or the Truth in Savings
Act (12 U.S.C. 4301 et seq.), or by the terms of an agreement
with a Federal or State regulatory agency, a servicer may include
additional information in a disclosure required under this subpart
or combine any disclosure required under this subpart with any disclosure
required by such other law.
(c) Successors
in interest.
(1) Optional notice with acknowledgment form. Upon confirmation, a servicer may provide a confirmed successor
in interest who is not liable on the mortgage loan obligation with
a written notice together with a separate acknowledgment form that
meets the requirements of paragraph (c)(1)(iv) of this section and
that does not require acknowledgment of any items other than those
identified in paragraph (c)(1)(iv) of this section. The written notice
must clearly and conspicuously explain that:
(i) The servicer has confirmed the successor
in interest’s identity and ownership interest in the property;
(ii) Unless the successor in interest
assumes the mortgage loan obligation under State law, the successor
in interest is not liable for the mortgage debt and cannot be required
to use the successor in interest’s assets to pay the mortgage debt,
except that the lender has a security interest in the property and
a right to foreclose on the property, when permitted by law and authorized
under the mortgage loan contract;
(iii) The successor in interest may be entitled to receive certain
notices and communications about the mortgage loan if the servicer
is not providing them to another confirmed successor in interest or
borrower on the account;
(iv)
In order to receive such notices and communications, the successor
in interest must execute and provide to the servicer an acknowledgment
form that:
(A) Requests
receipt of such notices and communications if the servicer is not
providing them to another confirmed successor in interest or borrower
on the account; and
(B) Indicates that
the successor in interest understands that such notices do not make
the successor in interest liable for the mortgage debt and that the
successor in interest is only liable for the mortgage debt if the
successor in interest assumes the mortgage loan obligation under State
law; and
(C) Informs the successor
in interest that there is no time limit to return the acknowledgment
but that the servicer will not begin sending such notices and communications
to the confirmed successor in interest until the acknowledgment is
returned; and
(v)
Whether or not the successor in interest executes the acknowledgment
described in paragraph (c)(1)(iv) of this section, the successor in
interest is entitled to submit notices of error under section 1024.35,
requests for information under section 1024.36, and requests for a
payoff statement under section 1026.36 with respect to the mortgage
loan account, with a brief explanation of those rights and how to
exercise them, including appropriate address information.
(2) Effect
of failure to execute acknowledgment. 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 paragraph (c)(1) of this section, the servicer
is not required to provide to the confirmed successor in interest
any written disclosure required by section 1024.17, section 1024.33,
section 1024.34, section 1024.37, or section 1024.39 or to comply
with the live contact requirements in section 1024.39(a) with respect
to the confirmed successor in interest until the confirmed successor
in interest either assumes the mortgage loan obligation under State
law or executes an acknowledgment that complies with paragraph (c)(1)(iv)
of this section and provides it to the servicer.
(3) Additional
copies of acknowledgment form. If a servicer provides a confirmed
successor in interest with a written notice and acknowledgment form
in accordance with paragraph (c)(1) of this section, the servicer
must make additional copies of the written notice and acknowledgment
form available to the confirmed successor in interest upon written
or oral request.
(4) Multiple notices unnecessary. Except as
required by section 1024.36, a servicer is not required to provide
to a confirmed successor in interest any written disclosure required
by section 1024.17, section 1024.33, section 1024.34, section 1024.37,
or section 1024.39(b) if the servicer is providing the same specific
disclosure to another borrower on the account. A servicer is also
not required to comply with the live contact requirements set forth
in section 1024.39(a) with respect to a confirmed successor in interest
if the servicer is complying with those requirements with respect
to another borrower on the account.
