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Notice to first lien mortgage loan applicants: the right to
collect your mortgage loan payments may be transferred. Federal
law gives you certain related rights. If you loan is made,
save this statement with your loan documents.
Because you are applying for a mortgage loan covered by the
Real Estate Settlement Procedures Act (RESPA) (12 U.S.C. Section
2601 et seq.) you have certain rights under that Federal law.
This statement tells you about those rights.
It also tells you what the chances are that the servicing
for this loan may be transferred to a different loan servicer. “Servicing” refers
to collecting your principal, interest and escrow account payments,
if any. If you loan servicer changes, there are certain procedures
that must be followed. This statement generally explains those
procedures.
If the servicing of your loan is assigned, sold, or transferred
to a new servicer, you must be given written notice of that
transfer. The present loan servicer must send you notice in
writing of the assignment, sale or transfer of the servicing
not less than 15 days before the effective date of the transfer.
The new loan servicer must also send you notice within 15 days
after the effective date of the transfer. The present servicer
and the new servicer may combine this information in one notice,
so long as the notice is sent to you 15 days before the effective
date of transfer. The 15 day period is not applicable if a
notice of prospective transfer is provided to you at settlement.
The law allows a delay in the time (not more than 30 days after
a transfer) for servicers to notify you, upon the occurrence
of certain business emergencies.
Notices must contain certain information. They must contain
the effective date of the transfer of the servicing of your
loan to the new servicer, and the name, address, and toll-free
or collect call telephone number of the new servicer, and toll-free
or collect call telephone numbers of a person or department
for both your present servicer and your new servicer to answer
to answer your questions. During the 60-day period following
the effective date of the transfer of the loan servicing, a
loan payment received by your old servicer before its due date
may not be treated by the new loan servicer as late, and a
late fee may not be imposed on you.
Section 6 of RESPA (12 U.S.C. Section 2605) gives you certain
consumer rights, whether or not your loan servicing is
transferred. If you send a “qualified written
request” to your servicer, your servicer must provide
you with a written acknowledgement within 20 Business Days
of receipt of your request. A “qualified written request” is
a written correspondence, other than notice on a payment coupon
or other payment medium supplied by the servicer, which includes
your name and account number, and the information regarding
your request. Not later than 60 Business Days after receiving
your request, your servicer must make any appropriate corrections
to your account, or must provide you with a written clarification
regarding any dispute. During this 60 Business Day period,
your servicer may not provide information to a consumer reporting
agency concerning any overdue payment related to such period
or qualified written request.
A Business Day is any day in which the offices of the business
entity are open to the public for carrying on substantially
all of its business functions.
Section 6 of RESPA also provides for damages and costs for
individuals or classes of individuals in circumstances where
servicers are shown to have violated the requirements of that
Section.
- The following is the best estimate of what will happen
to the servicing of your mortgage loan:
We may assign, sell or transfer the servicing of your loan
while the loan is outstanding. We are able to service your
loan and we haven’t decided whether to service your
loan. We assign, sell or transfer the servicing of some of
our loans while the loan is outstanding depending on the
type of loan and other factors. For the program you have
applied for, we expect to sell all of the mortgage servicing.
- For all the first lien mortgage loans that we make in the
12-month period after your mortgage loan is funded, we estimate
that the percentage of mortgage loans for which we will transfer
servicing is between 76 to 100%. This estimate does not include
assignments, sales or transfers to affiliates or subsidiaries.
This is only our best estimate and it is not binding. Business
conditions or other circumstances may affect our future transferring
decisions.
- This is our record of transferring the servicing of the
first lien mortgage loans we have made in the past:
Year |
Percentage of
Loans Transferred (rounded to nearest quartile – 0%,
25%, 50%, 75%, or 100%) |
2005 |
0% |
2006 |
0% |
2007 |
0% |
This information does not include assignments, sales or transfers
to affiliates or subsidiaries. |
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