Dennis Norman
Home mortgages are often sold or assigned, sometimes even right after the origination of the loan and, as a result, borrowers find themselves not knowing who their current lender is or how to contact their lender. This issue was addressed back in May 2009, as part of the Helping Families Save Their Homes Act, lenders that purchased home mortgages were required to provide disclosures in writing to the borrower within 30 days.
Thus far lenders have been operating under “temporary” rules though while waiting for the Federal Reserve to establish final rules. The Fed Reserve has now announced the final rules which will go into effect January 1, 2011. The new rules require:
- The company that acquires the homeowners loan to send the borrower a notice within thirty days of acquiring it. Among other things, the notice must disclose:
- the new owner’s identity, address, and telephone number;
- the date the loan was transferred; and
- contact information that you can use to reach an agent or other party, if any, authorized to act on behalf of the owner.
The disclosure is required for the following loans:
- Any loan taken out on a principal residence (so loans on a vacation or business properties would not be covered), including loans to purchase or refinance a home; and
- home equity loans, also known as second mortgage loans, and home equity lines of credit (HELOCs).
Again, the new rules go into effect January 1, 2011.
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