Servicing Disclosure
Notice to Mortgage Applications: The Right to Collect
your Mortgage loan Payments may be transferred. Federal Law gives
you certain related Rights.
Because you are applying for a mortgage loan covered by the Real
Estate Settlement Procedures Act (RESPA)(12 U.S.C. 2601 et Seq.)
you have certain rights under that Federal Law. This statement tells
you about those rights. It also tells you what your chances are
the servicing for this loan may be transferred to a different servicer.
"Servicing" refers to collecting your principal, interest
and escrow account payments, if any. If your loan servicer changes,
there are certain procedures that must be followed. This statement
generally explains those procedures.
TRANSFER PRACTICES AND REQUIREMENTS
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, transfer of the servicing not less than 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 the transfer. The 15 day period is not applicable if a notice
of prespective transfer is provided to you at settlement. The law
allows a delay in time (not more than 30 days after a transfer)
for servicers to notify you under certain limited circumstances,
when your serivcer changes abruptly. This exception applies only
if your servicer is fired for cause, is in bankruptcy proceedings,
or is involved in a conservatorship or receivership initiated by
a Federal Agency.
Notices must contain certain information
They must contain the effective date of the transfer of the servicing
of your loan to the servicer, the name and address, and toll-free
or collect call number of the new servicer, and toll-free or collect
call telephone numbers of a person or department for both the present
servicer and your new servicer to answer questions about the transfer
of servicing. 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.
Compliant Resolution
Section 6 of RESPA (12 U.S.C 2605) gives you certian consumer rights,
whether or not your loan servicing is transferred. If you send a
"qualified written request" to your loan servicer concerning
the servicing of your loan, 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 payment coupon or other payment
medium supplied by the servicer, which includes your name and account
number, and your reasons for the 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 must not provide information to a consumer
reporting agency concerning any over due payment related to such
period or qualified written request.
Damages and Costs
Section 6 of RESPA also provides for damages and costs for individuals
in circumstances where services are shown to have violated the requirements
of that Section.
A Business Day is any day, excluding public holidays (State or
Federal), Saturday or Sunday.
The servicing of the loan may be assigned, sold or transferred
at any time while the loan is outstanding.
We have previously assigned, sold or transferred the servicing
of first lien mortgage loans.
For all of the first lien mortgages that we make in a 12 month
period after your mortgage loan is funded, we estimate that the
percentage of such loans for which we will transfer servicing is
between 76% to 100%.
Equal Credit Opportunity Notice
The Equal Credit Opportunity Act as amended by P.L. 94-239 was signed
into law on March 23, 1976 and became effective on March 23, 1977.
The Federal Equal Credit Opportunity Act prohibits creditors from
discriminating against credit applicants on the basis of sex, marital
status, race, color, religion, national origin, age (Provided the
applicant has the capacity to contract), because all or part of
the applicant's income derives from any public assistance program;
or because the applicant has in good faith, exercised any right
under the Consumer Credit Protection Act. The Federal Agency which
administers compliance with this law is:
Director, Consumer Affairs
Office of Thrift Supervision
Washington D.C. 20552
or:
the Assistant of Fair Housing and Equal Opportunity
Department of Housing and Urban Development
Washington D.C. 20410
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