Notice when a new company becomes owner of your loan
15 U.S.C. § 1641(g)
In plain words
When your mortgage loan is sold or assigned to a new owner, the new owner must tell you in writing within 30 days. The notice must include who the new owner is, how to reach it, the date of transfer, and where the transfer is recorded.
Who is protected
Borrowers on a consumer mortgage loan secured by their principal dwelling.
When it applies
- Only if the home is your primary residence.
What you can do
Ask who owns your loan
If you never got a notice, send your servicer a request for information asking for the name and address of the loan's owner. It must answer within 10 business days.
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Honest limits
- A missing notice does not by itself cancel the loan or stop a foreclosure. It can support a claim for damages and questions about who has the right to foreclose.
- This is general legal information, not legal advice, and it does not promise any result. A HUD-approved housing counselor or a lawyer can look at your facts.
The law
- Federal lawTILA — notice of new creditor
15 U.S.C. § 1641(g)
Exact part: (g)
What it says: The new owner or assignee must notify the borrower in writing within 30 days after the loan is sold, transferred or assigned.
Read the official texthttps://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1641&num=0&edition=prelim - Federal regulationRegulation Z — mortgage transfer disclosures
12 C.F.R. § 1026.39
What it says: Regulation Z sets out who must give the transfer notice and what it must say.
Read the official texthttps://www.ecfr.gov/current/title-12/part-1026/section-1026.39
Court cases
- Homeowner lostSame topicBoren v. U.S. National Bank Ass'n
Boren v. U.S. Nat'l Bank Ass'n, 807 F.3d 99 (5th Cir. 2015)
a lender may abandon a prior acceleration by giving notice that it seeks less than the full accelerated balance, which restarts the four-year limitations period
- Homeowner lostSame topicWhittier v. Ocwen Loan Servicing, L.L.C.
Whittier v. Ocwen Loan Servicing, L.L.C., 594 F. App'x 833 (5th Cir. 2014) (per curiam) (unpublished)
a RESPA claim against a servicer fails without evidence of actual damages caused by the violation
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner wonSame topicRenfroe v. Nationstar Mortgage, LLC
Renfroe v. Nationstar Mortg., LLC, 822 F.3d 1241 (11th Cir. 2016)
a servicer that answers a borrower's written request without a reasonable investigation may be liable under RESPA when the borrower alleges resulting damages
- Homeowner wonSame topicJesinoski v. Countrywide Home Loans, Inc.
Jesinoski v. Countrywide Home Loans, Inc., 574 U.S. 259 (2015)
a borrower exercises the Truth in Lending right to rescind by notifying the lender in writing within three years, without needing to sue within that period
- Homeowner wonSame topicMarais v. Chase Home Finance LLC
Marais v. Chase Home Fin. LLC, 736 F.3d 711 (6th Cir. 2013)
a borrower who alleges actual damages, such as added interest, caused by a servicer's deficient response to a qualified written request states a RESPA claim
Related rights
Get information from your servicer (request for information)
12 C.F.R. § 1024.36(a)
You can ask your servicer in writing for information about your loan — for example your payment history, who owns your loan, or how your escrow was figured. The servicer must confirm it got your request within 5 business days and answer within 30 business days. If you ask who owns your loan, it must tell you within 10 business days.
Read this rightNotice when your loan moves to a new servicer
12 U.S.C. § 2605(b)–(d)
When the company that collects your payments changes, both the old and new servicer must tell you in writing. The old one must usually tell you at least 15 days before the switch; the new one within 15 days after. For 60 days after the switch, a payment you send on time to the old servicer cannot be treated as late.
Read this rightThe right to cancel some home-secured loans (rescission)
15 U.S.C. § 1635(a)
For some loans that put a lien on the home you live in — like many home-equity loans or refinances with a new lender — you can cancel within 3 business days after closing. If the lender did not give you the required notices and disclosures, that time can stretch up to 3 years. You cancel by sending the lender written notice.
Read this rightMake your servicer fix mistakes (notice of error)
12 C.F.R. § 1024.35(a)
If your mortgage servicer made a mistake — like not crediting a payment, charging a wrong fee, or giving a wrong payoff amount — you can send a written "notice of error." The servicer must confirm it got your letter within 5 business days. It then has to fix the error or explain in writing, after a reasonable investigation, why it thinks there was no error, usually within 30 business days.
Read this rightAn accurate payoff amount within 7 business days
12 C.F.R. § 1026.36(c)(3)
If you ask in writing how much it would take to pay off your mortgage, the lender or servicer must send you an accurate payoff statement within a reasonable time — no more than 7 business days. You need this to refinance, sell, or plan a way to save your home.
Read this rightThe right to be heard in court, and to speak for yourself
U.S. Const. amend. XIV, § 1Due Process Clause
Due process means that before the government, through a court, takes your property, you must get a meaningful chance to be heard. In federal court, you have a legal right to present your own case without a lawyer. Most state courts also let people represent themselves, under state rules.
Read this right