NOTICE OF SALE OR TRANSFER OF MORTGAGE LOANS REQUIRED

Section 404 of the Helping Families Save Their Homes Act of 2009 requires creditors to notify borrowers if the borrower’s mortgage loan is sold or assigned to a third party.

The new provision provides that not later than 30 days after the date on which a mortgage loan is sold or otherwise transferred or assigned to a third party, the creditor that is the new owner or assignee of the debt shall notify the borrower in writing of such transfer, including:

  1. the identity, address, telephone number of the new creditor;
  2. the date of transfer;
  3. how to reach an agent or party having authority to act on behalf of the new creditor;
  4. the location of the place where transfer of ownership of the debt is recorded; and
  5. any other relevant information regarding the new creditor.

“Mortgage loan” means any consumer credit transaction that is secured by the principal dwelling of a consumer.

The bill was signed by the President on May 20, 2009. Please let us know if you would like a copy of the Act or have other questions.

  • Elizabeth Anstaett and Darrell Dreher