Q: What does the rule on disclosing the Partial Payment Policy in mortgage transfer notices require?
A: If a creditor is required by existing Regulation Z to provide mortgage transfer notices when the ownership of a mortgage loan is being transferred, the creditor must include in the notice information related to the partial payment policy that will apply to the mortgage loan.
This post-consummation Partial Payment Policy Disclosure is required for a closed-end consumer credit transaction secured by a dwelling or real property, other than a reverse mortgage. As defined by Regulation Z, a dwelling includes, but is not limited to, a mobile home or a cooperative unit. (§ 1026.2(a)(19))