There’s a misconception out there that the mortgage servicing requirements are a “big bank” thing, and that’s not entirely true. While there is a large servicer element to these requirements, small servicers can’t just ignore them altogether. One area where small servicers don’t get an exemption from the requirements is information requests. When you have an information request, there are several timeframes you must abide by.
Click on the video to listen to Jerod explain more.
On July 28th, we hosted a Mortgage Servicing webinar where we get into what both large and small servicers need to know. If these requirements have you scratching your head, be sure to check it out On Demand.
Have you ever had one of your consumer mortgage customers inquire about information related to the loan that you’re servicing on their behalf? Hi there. This is Jerod Moyer with Banker’s Compliance Consulting. The answer is probably yes. Right? Of course you have. The question then is, all right, how did they go about it? Did they just drop by and ask you for this, or that, or the other thing, or did they pick up the phone and just call you. If it’s a request for information that falls within those buckets, then you probably just revert to plain, old, everyday customer service in how you handle that information request.
Is Mortgage Servicing a Big Bank Thing?
However, if they actually pick up their pen and they put it to paper or they type it out and submit it formally … What do I mean by that? Giving you their name, the account information, and then the information that they’re actually seeking out. Well, that’s going to fall under regulatory requirements. In other words, you’re going to have I’s to dot and T’s to cross if it’s formally submitted. What’s that mean? Well, what it means is you have to respond by acknowledging that you’ve simply received the request for information within five days. You have 10 days to acknowledge and respond with the request if it’s related to contact information, and then everything else kind of has this 30 day element tied to it.
Here’s the deal. There’s a misconception out there that mortgage servicing is a big bank thing, and it’s just not entirely true. Yeah, there’s a large servicer element to this. In other words, some small servicers get out of some parts of mortgage servicing. Information requests is not an area where there is a small servicer exemption. So, everybody that is a financial institution that services mortgage loans has to comply with this five, 10, 30 day timeframe that I referred to in this short, little video here today.
Mortgage serving is just one of the compliance topics that we have training on within our library at bankerscompliance.com. I’d invite you and your teams to check out the other compliance topics that we cover, or better yet, pick up the phone and give us a call. We can chat with one another and figure out how we may be able to partner with you to meet the challenges that you face as it relates to the regulatory compliance requirements. Let’s have a discussion.