The Federal Reserve Board (FRB) has announced final rules to implement a statutory amendment to the Truth-in-Lending Act (TILA) requiring that consumers receive notice when their mortgage loan has been sold or transferred. The new disclosure requirement became effective in May 2009, upon enactment of the Helping Families Save Their Homes Act. Under that act, a purchaser or assignee that acquires a mortgage loan must provide the required disclosures in writing within 30 days.
To provide compliance guidance and greater certainty on the new requirements, the Board published interim rules in November 2009, which were effective immediately. To allow covered parties time to make any necessary operational changes, they may continue to follow the November 2009 interim rules until the mandatory compliance date for the final rules, which is Jan. 1, 2001.
Consumers can learn more about mortgage transfer disclosures by accessing a new online publication, "What You Need to Know: New Rules for Mortgage Transfers." It explains what consumers can expect from their mortgage lenders regarding notification of mortgage transfers.
Click here to view the final rule and official staff commentary.
For more information, visit www.federalreserve.gov.