[Federal Register Volume 60, Number 53 (Monday, March 20, 1995)]
[Rules and Regulations]
[Pages 14635-14636]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6794]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 3500
[Docket No. R-95-1538; FR-2942-C-07]
RIN 2502-AG27
Office of the Assistant Secretary for Housing-Federal Housing
Commissioner; Real Estate Settlement Procedures Act, Section 6 Transfer
of Servicing of Mortgage Loans (Regulation X): Corrections
AGENCY: Office of the Assistant Secretary for Housing-Federal Housing
Commissioner, HUD.
ACTION: Final rule.
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SUMMARY: The final rule published on December 19, 1994, is being
further amended to correct technical errors and to conform the rule
text and an Appendix. Previously, on January 10, 1995, the Department
published a substitute page correcting Appendix MS-1 to Part 3500 and
correcting a cross-reference. The corrections published today are
necessary to clarify certain other provisions.
EFFECTIVE DATE: June 19, 1995. This is the same effective date as
applies to the final rule and earlier corrections. However, the
Department continues to encourage persons covered by the new rule to
implement all of its provision earlier than the rule's effective date.
FOR FURTHER INFORMATION CONTACT: David R. Williamson, Director, RESPA
Enforcement, Room 5239, Department of Housing and Urban Development,
451 7th Street, S.W., Washington, D.C. 20410, telephone (202) 708-4560.
The TDD number for hearing-impaired persons is (202) 708-4594. (These
are not toll-free numbers.)
SUPPLEMENTARY INFORMATION: Under the Real Estate Settlement Procedures
Act of 1974 (12 U.S.C. 2601 et seq.) (RESPA), the Secretary is to
publish regulations implementing the requirements in Section 6 (12
U.S.C. 2605) concerning the servicing of mortgage loans. On December
19, 1994 (59 FR 65442), the Department published a final rule
implementing Section 6 of RESPA. On January 10, 1995 (60 FR 2642), the
Department published a substitute page correcting Appendix MS-1 to Part
3500, the Servicing Disclosure Statement, to include the Acknowledgment
of Mortgage Loan Applicant that was referenced in the rule text. In
addition, the January 10, 1995, publication corrected a cross-reference
in Sec. 3500.21(e) of the rule.
Additional corrections are necessary:
(a) To clarify terminology relating to the period of time
applicable to certain calculations;
(b) To clarify how long signed acknowledgements must be retained;
(c) To clarify the contents of the Notices of Transfer, including
removing one unnecessary requirement and ensuring that borrowers are
advised of their rights in connection with complaint resolution; and
(d) To clarify the protections applicable to borrowers during a
transfer of loan servicing and to conform the text of the rule with
Appendix MS-2, Notice of Assignment, Sale, or Transfer of Servicing
Rights.
In addition, the Department is correcting a cross-reference in one
of the definitions applicable to part 3500.
Accordingly, 24 CFR 3500.2 is amended and FR Doc. 94-30413, the
final rule on Real Estate Settlement Procedures Act, Section 6 Transfer
of Servicing of Mortgage Loans (Regulation X); and Real Estate
Settlement Procedures Act (Regulation X); Escrow Accounting Procedures:
Technical Correction, published December 19, 1994 (59 FR 65442), is
corrected, as follows:
PART 3500--REAL ESTATE SETTLEMENT PROCEDURES ACT
1. The authority citation for 24 CFR part 3500 continues to read as
follows:
Authority: 12 U.S.C. 2601 et seq.
2. In Sec. 3500.2, the definition of ``Lender'' is amended by
revising the fourth sentence to read as follows:
Sec. 3500.2 Definitions.
* * * * *
Lender * * * See also Sec. 3500.5(b)(7), secondary market
transactions.
* * * * *
Sec. 3500.21 [Corrected]
3. In the Federal Register of December 19, 1994, on page 65449, the
second sentence in Sec. 3500.21(b)(3)(iii) is amended at the first and
fourth line of the third column by substituting the phrase ``12-month
period'' for the phrase ``calendar year'' in the two places where it
appears.
4. On page 65450, in the first column, in Sec. 3500.21, a new
paragraph (c)(3) is added, to read as follows:
Sec. 3500.21 Mortgage servicing transfers.
* * * * *
(c) * * *
(3) The signed Applicant Acknowledgment(s) shall be retained for a
period of 5 years after the date of settlement as part of the loan file
for every settled loan. There is no requirement for retention of
Applicant Acknowledgment(s) if the loan is not settled.
* * * * *
5. On page 65450, beginning in the second column, in Sec. 3500.21:
a. Paragraphs (d)(3) (ii) and (iii) are revised;
b. The word ``and'' is removed following the semicolon at the end
of paragraph (d)(3)(v) in the third column;
c. The period at the end of paragraph (d)(3)(vi) in the third
column is replaced with the word ``; and'';
d. A new paragraph (d)(3)(vii) is added; and
e. Paragraph (d)(5) is revised, to read as follows:
* * * * *
(d) * * *
(3) * * *
(ii) The name, consumer inquiry addresses (including, at the option
of the servicer, a separate address where qualified written requests
must be sent), and a toll-free or collect-call telephone number for an
employee or department of the transferee servicer;
(iii) A toll-free or collect-call telephone number for an employee
or department of the transferor servicer that can be contacted by the
borrower for answers to servicing transfer inquiries;
* * * * *
(vii) A statement of the borrower's rights in connection with
complaint resolution, including the information set forth in paragraph
(e) of this section. Appendix MS-2 of this part illustrates a statement
satisfactory to the Secretary.
* * * * *
(5) Consumer protection during transfer of servicing. During the
60-day period beginning on the effective date of transfer of the
servicing of any mortgage servicing loan, if the transferor servicer
(rather than the transferee servicer that should properly receive
payment on the loan) receives payment on or before the applicable due
date (including any grace period allowed under the loan documents), a
late fee may not be imposed on the borrower with respect to that
payment and the payment may not be treated as late for any other
purposes.
* * * * *
Dated: March 14, 1995.
Nicolas P. Retsinas,
Assistant Secretary for Housing-Federal Housing Commissioner.
[FR Doc. 95-6794 Filed 3-17-95; 8:45 am]
BILLING CODE 4210-27-P
