Notice of Assignment - Sale or Transfer of Servicing Rights - Mortgage Loans
What is this form?
The Notice of Assignment - Sale or Transfer of Servicing Rights - Mortgage Loans is a legal document that informs borrowers that the servicing rights of their mortgage loan are being transferred to another servicer. This notice ensures that the borrower is updated on who will be collecting their loan payments and provides important details about the new servicer. Unlike other forms related to mortgage loans, this document specifically addresses the servicing rights and does not alter the terms of the original mortgage agreement itself.
Key parts of this document
- Borrower identification: Names of all borrowers involved.
- Original servicer and new servicer information: Names and contact details of both parties.
- Effective date: The date when the servicing transfer will take place.
- Contact information: Toll-free number and business address of the new servicer.
- Legal compliance: Assurance that notification complies with legal requirements.
State-specific requirements
This is a general form suitable for multiple states. Review and modify it as needed to reflect your jurisdiction’s rules.
When this form is needed
This form should be used when a lender or financial institution that services mortgage loans decides to transfer servicing responsibilities to another servicer. Borrowers need to be informed of this transfer to ensure smooth payment processes and communication with the new servicer. The form is essential for maintaining transparency in the borrower-servicer relationship.
Intended users of this form
- Borrowers who have been notified of a transfer of servicing rights on their mortgage loans.
- Lenders who must provide official notification to borrowers regarding the change in servicers.
- New servicers responsible for communicating their details to impacted borrowers.
Steps to complete this form
- Identify the borrowers: List the names of all individuals responsible for the mortgage loan.
- Fill in servicer details: Enter the names of the original servicer and the new servicer.
- Specify the effective date: Provide the date when the transfer of servicing will take place.
- Complete contact information: Include the toll-free number and business address of the new servicer.
- Sign if required: Ensure the required parties sign the document if necessary.
Notarization requirements for this form
In most cases, this form does not require notarization. However, some jurisdictions or signing circumstances might. US Legal Forms offers online notarization powered by Notarize, accessible 24/7 for a quick, remote process.
Common mistakes to avoid
- Failing to provide accurate contact information for the new servicer.
- Not communicating the transfer in a timely manner, which may violate legal requirements.
- Omitting key details like effective date, which may cause confusion for borrowers.
Why complete this form online
- Convenience: Downloadable forms allow for immediate access and completion from anywhere.
- Editability: Users can fill out the form at their own pace and make adjustments as necessary.
- Legal accuracy: Forms are drafted by licensed attorneys, ensuring compliance with legal standards.
Legal use & context
- This form serves as formal notification to borrowers and is a legal requirement in many jurisdictions.
- Ensures that the borrower is aware of who is servicing their loan, maintaining transparency.
- The transfer does not affect the original mortgage terms other than the servicing-related provisions.
Form popularity
FAQ
From the perspective of a borrower, the 'sale' of your mortgage usually means that the servicing of your mortgage has transferred to a new company, meaning you will be sending your monthly payment to a new company.It is also not uncommon for you mortgage to be 'transferred' from one mortgage servicer to another.
When must a borrower receive notice of whether loan servicing can be assigned, sold, or transferred? Either at the time of application or within three business days of application.
A lender has how many business days to notify the borrower of an underwriting decision? - The Equal Credit Opportunity Act requires that any decision be communicated to the applicant within 30 days.
When you have a mortgage transferred to Fannie Mae, your loan servicer doesn't change right away.Once Fannie Mae buys a group of mortgages, they're turned into mortgage-backed securities, which are then bought by investment banks, insurance companies and pension funds.
Section 404 of the Helping Families Save Their Homes Act of 2009 requires certain mortgage purchasers to notify borrowers in writing of the sale, transfer, or assignment of their mortgage.
Which of the following is not a requirement for the servicing notice given in the event of a transfer of servicing? The answer is it must be given within 30 days of the transfer.
Besides the Annual Escrow Statement, RESPA requires a Servicing Transfer Statement to be sent to the consumer if the loan servicer sells or assigns the servicing rights to a borrower's loan to another loan servicer. The loan servicer must notify the borrower 15 days before the effective date of the loan transfer.
(i) In general. The transferee servicer shall provide the notice of transfer to the borrower not more than 15 days after the effective date of the transfer.
Definition: Transfer of Loan Servicing When your lender transfers servicing, they hand over the management of your loan to a new mortgage or servicing company.The only change as a result of this transfer will be where you send your monthly mortgage payment.
