My bank assigns ownership of closed residential mortgage loans it originates to a passive investment company (P.I.C.), but retains the servicing. Currently the borrower receives the disclosures required under § 1026.39 on the bank’s letterhead. In addition to adding the paragraph (d)(5) disclosures, I initially thought the disclosure should be provided on the P.I.C.’s letterhead. However, the commentary states (page 1210) that “If the covered person becoming a new creditor will not also be the servicer, the new creditor will have to make arrangements with the servicer to ensure that the consumer receives the disclosures required by § 1026.39(d)(5)”. I would like to interpret that as permission to continue to provide the disclosures on the bank’s letterhead, as we would prefer. Opinions on that conclusion would be appreciated.
I agree with your assessment due to the information you found in the commentary. In my opinion, if the creditor you are assigning these residential mortgage loans to agrees to allow your bank, the servicer, to continue to send out the required disclosures you should be in compliance with the regulation. I would ensure; however, that you have an agreement with the PIC, in writing, to continue to provide these disclosures.