Alert August 24, 2010

FRB Issues Final Rule on Mortgage Loan Transfer Disclosure

The FRB issued a final rule implementing a disclosure requirement for mortgage loan sales and transfers. The final rule was issued pursuant to a 2009 amendment of the Truth in Lending Act that requires a purchaser or assignee that acquires a mortgage loan to provide consumers notice when their loan has been sold or transferred in writing within 30 days. The FRB had previously issued an interim rule in November 2009, which was effective immediately. The mandatory compliance date for the final rule is January 1, 2011. Until then, the interim rule may be followed. Click here for the final rule and here for an online publication developed by the FRB for consumers concerning the final rule.