Page:United States Statutes at Large Volume 104 Part 5.djvu/1085

 PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4407 which the assignment, sale, or transfer of the servicing of the mortgage loan is preceded by— "(i) termination of the contract for servicing the loan for cause; "(ii) commencement of proceedings for bankruptcy of the servicer; or "(iii) commencement of proceedings by the Federal Deposit Insurance Corporation or the Resolution Trust Corporation for conservatorship or receivership of the servicer (or an entity by which the servicer is owned or controlled). " (C) EXCEPTION FOR NOTICE PROVIDED AT CLOSING. —The provisions of subparagraphs (A) and (B) shall not apply to any assignment, sale, or transfer of the servicing of any mortgage loan if the person who makes the loan provides to the borrower, at settlement (with respect to the property for which the mortgage loan is made), written notice under paragraph (3) of such transfer. "(3) CONTENTS OF NOTICE.—The notice required under paragraph (1) shall include the following information: "(A) The effective date of transfer of the servicing described in such paragraph. "(B) The name, address, and toll-free or collect call telephone number of the transferee servicer. "(C) A toll-free or collect call telephone number for (i) an individual employed by the transferor servicer, or (ii) the department of the transferor servicer, that can be contacted by the borrower to answer inquiries relating to the transfer of servicing. "(D) The name and toll-free or collect call telephone number for (i) an individual employed by the transferee servicer, or (ii) the department of the transferee servicer, that can be contacted by the borrower to answer inquiries relating to the transfer of servicing. "(E) The date on which the transferor servicer who is servicing the mortgage loan before the assignment, sale, or transfer will cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments. "(F) Any information concerning the effect the transfer may have, if any, on the terms of or the continued availability of mortgage life or disability insurance or any other type of optional insurance and what action, if any, the borrower must take to maintain coverage. "(G) A statement that the assignment, sale, or transfer of the servicing of the mortgage loan does not affect any term or condition of the security instruments other than terms directly related to the servicing of such loan. "(c) NOTICE BY TRANSFEREE OF LOAN SERVICING AT TIME OF TRANSFER.— "(1) NOTICE REQUIREMENT.—Each transferee servicer to whom the servicing of any federally related mortgage loan is assigned, sold, or transferred shall notify the borrower of any such assignment, sale, or transfer. "(2) TIME OF NOTICE. — "(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), the notice required under paragraph (1) shall be

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