Real Estate Settlement Procedures Act, Section 6, Transfer of Servicing of Mortgage Loans and Real Estate Settlement Procedures Act (Regulation X); Escrow Accounting Procedures; Technical Correction; Final Rule DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Résumé

This final rule replaces the Interim Rule dated April 26, 1991, and implements the provisions of section 6 of the Real Estate Settlement Procedures Act (RESPA). Most recently, the Riegle Community Development and Regulatory Improvement Act of 1994 provides alternate methods for disclosure of mortgage servicing history. Section 6 also sets forth procedures regarding the transfer of mortgage servicing for any federally related mortgage loan, as defined in section 3 of RESPA and the definition is refined in the implementing regulation for RESPA and 24 CFR 3500.2. Although RESPA was extended by section 908 of the Housing and Community Development Act of 1992 to subordinate liens, in this rule the Secretary has exempted from RESPA's mortgage servicing coverage all federally related mortgage loans that are not secured by a first lien. In addition, the Department has adopted conforming amendments to 24 CFR part 203, the FHA Single Family Mortgage Insurance program. The Department is also publishing a conforming amendment to its final rule on escrow accounting procedures, published on October 26, 1994 (59 FR 53890). This amendment will update a cross-reference in another section of part 35