Understanding the New Mortgage Transfer Rules

The Federal Reserve recently came out with new rules in regards to mortgage transfers designed to help the borrower.  The new rules are in regard to the borrower being notified when their loans get transferred to a different company.

The new rules are important because it ensures the borrower is aware of who owns their loan.  This is important because the borrower needs to know who to contact with any questions, concerns, disputes, or loan modification questions.

The new rules require the company that acquires your loan to send you a notice within 30 days of the acquisition.  This notice must include the following information:  the new company’s name, address, and telephone number, the date the loan was transferred and the contact information that can be used to reach the agent authorized to act on behalf of the owner. 

These notices are required to be sent out whenever a transfer is done to the mortgage for your principal residence or your home equity loan.  It is important to note these new rules do not apply to mortgages for your vacation or business properties. 

If you receive one of these notices be sure to read it closely and file it so that you have the new information handy if you ever need it.