Bankin’ Bits

The Federal Reserve Board has approved an interim final rule revising Regulation Z to implement a recent statutory amendment requiring that consumers receive notices whenever their mortgage loan is sold or transferred.  To access the rule, click here.

The new disclosure requirement became effective immediately upon enactment of the Helping Families Save Their Homes Act in May, 2009.  Under that Act, the purchaser or assignee of a mortgage loan must provide the required written  disclosures within 30 days of the purchase or assignment.

The interim final rule  is effective upon publication in the Federal Register.  However, to allow time for any necessary operational changes, compliance with the interim final rule is optional for 60 days after publication.  During the 60-day period, parties that acquire a mortgage loan continue to be subject to the statute’s requirements.

The Board is also soliciting comment on the interim rule for 60 days before considering the adoption of a permanent rule.