Academic journal article ABA Banking Journal

RESPA Change Reflects CFPB Read of People's Need

Academic journal article ABA Banking Journal

RESPA Change Reflects CFPB Read of People's Need

Article excerpt

Q. The MS-2 Notice (transfer of servicing) under RESPA has been modified to eliminate the reference to Section 6 of RESPA. In addition, the Qualified Written Request language pertaining to error resolution has been removed from the notice as well. Does this information still need to be provided to the borrower? If so, how and where?

A. You are correct that the model notice has been revised. And yes, the information is still required. The Consumer Financial Protection Bureau addressed this issue in the preamble to the Final Rule. The bureau proposed to remove this requirement from the servicing transfer notice in new Section 1024.33(b)(4), and decided to adopt Section 1024.33(b) (4) without a requirement to provide information about complaint resolution, as proposed.

The bureau believed that borrowers are best served by providing notice that clearly and concisely explains that servicing of their mortgage is being transferred, and that detailed information about the error resolution and information request process may not always be optimally located in the transfer notice. …

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