Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the wp-migrate-db domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /srv/app/gotoiba-dev/htdocs/web/wp-includes/functions.php on line 6121
Is the Illinois version of the Notice of Assignment, Sale and Transfer form intended to supersede the federal form? Or should we provide the RESPA form and include a reference to Illinois law? – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

Is the Illinois version of the Notice of Assignment, Sale and Transfer form intended to supersede the federal form? Or should we provide the RESPA form and include a reference to Illinois law?

—

by

No, the Illinois notice of a mortgage servicing transfer does not supersede the federal notice required by the Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA). Consequently, you should provide either a combined notice that encompasses both the federal and Illinois requirements or separate federal and Illinois notices.

It would be appropriate to use a combined notice using a federal form, provided that it includes the additional information required by the Illinois Banking Act. Regulation Z permits mortgage servicing transfer notices to be “combined with other materials or disclosures, including the transfer of servicing notices required by the Real Estate Settlement Procedure Act.”

For resources related to our guidance, please see:

  • Illinois Banking Act, 205 ILCS 5/48.2(e) (Requires banks to provide a servicing transfer notice within 45 days “if the servicing of a residential mortgage shall be transferred from the original mortgagee . . . which notice shall set forth: the name and address of the transferee; the name, address and telephone number to which inquiries by the residential mortgagor should be addressed; and the name and address to which the next 3 monthly installments are to be submitted to the transferee and the amount of each of such monthly installment; . . .”)
  • Official Interpretations, Regulation Z, 12 CFR 1026, Paragraph 39(b)(1), Comment 1 (“COMBINING DISCLOSURES. The disclosures under this section can be combined with other materials or disclosures, including the transfer of servicing notices required by the Real Estate Settlement Procedure Act (12 U.S.C. 2601 et seq.) so long as the combined disclosure satisfies the timing and other requirements of this section.”)