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Reply To: Monthly Mortgage Statements

#3453
rcooper
Member

Below is an excerpt from the proposed revisions to the servicing rules. The proposed comment below is one of many pertaining specifically to the small servicer exemption.
It further clarifies what is already stated in commentary 1026.41(e)(4)(ii).

The proposed comment 41(e)(4)(ii)-1 would set forth the two requirements for determining if a servicer is a small servicer and would clarify that both requirements apply to the mortgage loans serviced by the servicer as well as by its affiliates. The comment would set forth both requirements: (1) A servicer, together with its affiliates, must service 5,000 or fewer mortgage loans, and (2) the servicer must only service mortgage loans for which the servicer (or an affiliate) is the creditor or assignee. Proposed comment 41(e)(4)(ii)-2 would further clarify that to be the “creditor or assignee” of a mortgage loan, the servicer (or an affiliate) must either currently own the mortgage loan or must have been the entity to which the mortgage loan was initially payable (that is, the originator of the mortgage loan). A servicer that only services such mortgage loans may qualify as a small servicer so long as the servicer also only services 5,000 or fewer mortgage loans.

As the proposed comment clarifies the requirement, if your bank is below the 5,000 threshold and is the original creditor of these loans then you should qualify for the small creditor exemption.