Topic: CFPB 2014 Mortgage Rules: TILA and RESPA Mortgage Servicing Rules
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What is the correct way to pay out an escrow account when a borrower terminates a mortgage loan? Is it taken off of the loan principal or is it refunded directly to the borrower?
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We believe that, until January 2014, at the termination of a mortgage loan, the remaining escrow account must be refunded directly to the borrower (unless the total amount of surplus is less than $50, in which case the amount may be applied to the loan principal). 12 CFR 1024.17. The Department of Housing and Urban…
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If we purchase the assets of a failed bank through the FDIC, do we have to send the Regulation Z Notice of Mortgage Transfer to borrowers?
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We believe that a bank would have to send Regulation Z mortgage transfer disclosures after acquiring residential loans through an FDIC purchase and assumption transaction. As stated in the rule commentary, “[d]isclosures are required under this section when, as a result of a merger, corporate acquisition, or reorganization, the ownership of a mortgage loan is…