A mortgage servicer transfers the servicing of a borrower's loan to a new servicer. Under RESPA, what notice must be provided to the borrower?
Correct Answer
C) Both the current and new servicer must provide written notice of the transfer at least 15 days before the effective date
RESPA requires both the transferring and receiving servicers to provide written notice to the borrower at least 15 days before the effective date of the transfer (or no later than 15 days after in some cases). The notices may be combined into a single document.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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