Lenders to Tell Homeowners When Mortgage is Sold

Posted by: Chris Palmeri on May 18, 2009

senator boxer.jpg

Got this note from California Senator Barbara Boxer:

The Senate recently passed an amendment (SA 1035) I authored requiring that homeowners be alerted within 30 days if their lender sells or transfers their home mortgage loan. The amendment is good news for America’s homeowners.

My amendment provides transparency and gives homeowners another tool to fight illegitimate foreclosures and negotiate loan modifications to help keep families in their homes. Under the measure, if a loan is sold or transferred, the new note holder would have 30 days to notify the homeowner with the following information:

-the identity, address, and telephone number of the new creditor;
-the date of the transfer;
-how to reach an agent or party with the authority to act on behalf of the new creditor;
-the place where the transfer is recorded, and
any other relevant information regarding the new creditor.

This is just common sense: If you have a mortgage on your home, you should know who actually holds that mortgage. But too often, homeowners are not able to modify their mortgages to avoid foreclosure simply because they cannot find out who holds their mortgage.

My measure has been endorsed by the National Consumer Law Center, the National Association of Consumer Advocates, Consumer Action, the Consumer Federation of America, Consumers Union, the National Association of Neighborhoods, the National Council of La Raza and the National Fair Housing Alliance.

Reader Comments

Lenore

May 20, 2009 5:33 PM

I was wondering if this amendment was retroactive, if so back to what date or year? Does this amendment start with the loans after the measure was approved or does it encompass prior transfers?
Thank you.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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