A borrower's loan is sold to a new owner, and the servicing is transferred simultaneously. The borrower receives the transfer notice 20 days after the effective date of the transfer. This timing:
Correct Answer
B) Violates RESPA servicing transfer notice requirements
Under RESPA Section 6, borrowers must receive servicing transfer notices at least 15 days before the effective date of transfer, or not more than 15 days after if certain conditions are met. Providing notice 20 days after the transfer violates the timing requirements regardless of other factors.
Why This Is the Correct Answer
Under RESPA Section 6, borrowers must receive servicing transfer notices at least 15 days before the effective date of transfer, or not more than 15 days after if certain conditions are met. Providing notice 20 days after the transfer violates the timing requirements regardless of other factors.
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