Profile: papertracker
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What's Happening Now
Hi papertracker, and thanks for participating. It sounds like you’re suggesting that the new servicer should disclose to the borrower all the information it received from the old servicer. Do you think that the new rules on information requests and error resolution would protect borrowers from mishandled information? The costs of responding to error requests may be much lower than the disclosures you suggest.
Though it may be a good point, that would only/should apply if they are BUYING IT…what is happening is that service companies do just that…only service and do NOT really have invested interest outside of the fees they would collect.
Again, as long as the borrower pays…everything is smooth. It is NOT until the borrower doesnt pay is when we see inconsistencies with these loans and how the data is handled.
Yes, all loan origination documentation, loan servicing history, customer contact history, etc should be transferred. If I were to transfer from 1 school to another or 1 primary care provider to another, all of my records are transferred along with me. With servicing transfers, this is often not done.
Also the new servicer should be given a specific deadline to have all of the missing customer information boarded into their systems. As this is often done en masse and electronically, it should take no more than 5 days, but let’s say 15 days just to be nice.
Also, the burden of filling in this missing information should be on the loan servicer, NOT the borrower. I don’t see any reason why if my bank decides to sell my portfolio, it’s suddenly my problem to resubmit information… more »
Since the new servicer is essentially the ‘buyer’ of the right to service the mortgage why does this proposed rule not require full disclosure of all information provided by the prior servicer within a reasonable period of time(like 30 [very generous in the computer age] days). It seems to me that by acquiring those servicing rights the servicer should also have responsibilities regarding completion and accuracy of information transfer from ‘old’ to ‘new’ servicers. With full disclosure to the borrower of the information obtained from the previous servicer within 30 days. This should enhance transparency by making this all available to the borrower(the party most involved and most isolated) in this process.