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Disclosure rule for interim mortgage sale

Shared by Smith.sussane on Tue Nov 17, 2009 1:47 am
The Federal Reserve Board has approved a final rule related to interim mortgage sale. According to this disclosure rule, the lenders should notify the consumers whenever their mortgage has been sold or transferred to some other lender. This complies with the legislation passed by the Congress in May which intended to make homeowners more aware of ownership of their mortgage. Source: http://www.reuters.com/article/gc03/idUSTRE5AF4JU20091116

Community Members Opinion

sara

Joined: 05 Jul 2006

Moderator
Posts: 2645
Location: New Brunswick, New Jersey

488.43 Dollars($)

Posted: Tue Nov 17, 2009 1:57 am Post subject:

Hi Sussane, Thanks for sharing this important news with the community. I feel this is an important step taken by the Federal Reserve to help the borrowers. In this period of real estate crisis, most of the borrowers are facing difficulty determining who owned their mortgage. They do not know whom to contact regarding their queries or complaints when they are facing mortgage problems. As a result, lots of borrowers are unable to apply for loan modification at the right time. With the implementation of this rule, the borrowers would at least know whom to contact when they want to apply for a mortgage modification or any other mortgage help. Take care.

savior70

Joined: 25 Mar 2009

Posts: 1895
Location: Florida

261.84 Dollars($)

Posted: Tue Nov 17, 2009 3:17 am Post subject:

Hi, I agree with you, Sara. The mortgage sale disclosure rule will keep the borrowers aware of who actually own their mortgages and who to contact when needed. Many a time I come across issues in the forum where the borrowers are confused as to who has the ownership of their mortgages. It often happens with second mortgages that the original lender has sold off the loan to a collection agency without informing the borrower. When the borrowers contact the lender, they learn the mortgage has been sold off. It creates a lot of confusion. But with the introduction of this new rule, the borrowers will now be informed about the sale of their mortgages within 10 days of the mortgage sale off. This, hopefully, will remove much of the confusion from the minds of the borrowers when their mortgages are sold off to a different loan servicer.

Niicss
Niicss

Joined: 03 Oct 2005

Posts: 4770
Location: New Jersey

499.28 Dollars($)

Posted: Tue Dec 01, 2009 3:43 am Post subject: Mortgage disclosure rule may change

In a recent proposal, Federal Reserve has announced that some investors would be exempt from the requirement that they should inform the consumers within 30 days after their mortgage is sold or transferred to a new mortgage company. As per the new proposal, the disclosure requirement will apply in case of an investor who acquires legal title to a loan. It excludes those who acquire a partial interest. This includes the investors in mortgage-backed securities. _________________ Good is the Enemy of Great.


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