Mortgage Servicing and Loan Modifications: 11.2.5.7 Transfer of Servicing Notice
Lenders are required at the time of application for most mortgage loans to disclose to each applicant whether the servicing of the loan may be assigned, sold, or transferred at any time during the term of the mortgage.49 If the servicing of a mortgage is transferred after the mortgage loan is made, both the former and the new servicer must notify the borrower in writing of the transfer.50 Since many servicing problems occur at or near the time of transfer of servicing, the information contained in t