12 C.F.R. § 226.39

Mortgage transfer disclosures

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(a) Scope. The disclosure requirements of this section apply to any covered person except as otherwise provided in this section. For purposes of this section:

(1) A “covered person” means any person, as defined in § 226.2(a)(22), that becomes the owner of an existing mortgage loan by acquiring legal title to the debt obligation, whether through a purchase, assignment or other transfer, and who acquires more than one mortgage loan in any twelve-month period. For purposes of this section, a servicer of a mortgage loan shall not be treated as the owner of the obligation if the servicer holds title to the loan, or title is assigned to the servicer, solely for the administrative convenience of the servicer in servicing the obligation.

(2) A “mortgage loan” means any consumer credit transaction that is secured by the principal dwelling of a consumer.

(b) Disclosure required. Except as provided in paragraph (c) of this section, each covered person is subject to the requirements of this section and shall mail or deliver the disclosures required by this section to the consumer on or before the 30th calendar day following the date of transfer.

(1) Form of disclosures. The disclosures required by this section shall be provided clearly and conspicuously in writing, in a form that the consumer may keep. The disclosures required by this section may be provided to the consumer in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act) (15 U.S.C. 7001 et seq.).

(2) The date of transfer. For purposes of this section, the date of transfer to the covered person may, at the covered person's option, be either the date of acquisition recognized in the books and records of the acquiring party, or the date of transfer recognized in the books and records of the transferring party.

(3) Multiple consumers. If more than one consumer is liable on the obligation, a covered person may mail or deliver the disclosures to any consumer who is primarily liable.

(4) Multiple transfers. If a mortgage loan is acquired by a covered person and subsequently sold, assigned, or otherwise transferred to another covered person, a single disclosure may be provided on behalf of both covered persons if the disclosure satisfies the timing and content requirements applicable to each covered person.

(5) Multiple covered persons. If an acquisition involves multiple covered persons who jointly acquire the loan, a single disclosure must be provided on behalf of all covered persons.

(c) Exceptions. Notwithstanding paragraph (b) of this section, a covered person is not subject to the requirements of this section with respect to a particular mortgage loan if:

(1) The covered person sells, or otherwise transfers or assigns legal title to the mortgage loan on or before the 30th calendar day following the date that the covered person acquired the mortgage loan which shall be the date of transfer recognized for purposes of paragraph (b)(2) of this section;

(2) The mortgage loan is transferred to the covered person in connection with a repurchase agreement that obligates the transferor to repurchase the loan. However, if the transferor does not repurchase the loan, the covered person must provide the disclosures required by this section within 30 days after the date that the transaction is recognized as an acquisition on its books and records; or

(3) The covered person acquires only a partial interest in the loan and the party authorized to receive the consumer's notice of the right to rescind and resolve issues concerning the consumer's payments on the loan does not change as a result of the transfer of the partial interest.

(d) Content of required disclosures. The disclosures required by this section shall identify the loan that was sold, assigned or otherwise transferred, and state the following:

(1) The name, address, and telephone number of the covered person.

(i) If a single disclosure is provided on behalf of more than one covered person, the information required by this paragraph shall be provided for each of them unless paragraph (d)(1)(ii) of this section applies.

(ii) If a single disclosure is provided on behalf of more than one covered person and one of them has been authorized in accordance with paragraph (d)(3) of this section to receive the consumer's notice of the right to rescind and resolve issues concerning the consumer's payments on the loan, the information required by paragraph (d)(1) of this section may be provided only for that covered person.

(2) The date of transfer.

(3) The name, address and telephone number of an agent or party authorized to receive notice of the right to rescind and resolve issues concerning the consumer's payments on the loan. However, no information is required to be provided under this paragraph if the consumer can use the information provided under paragraph (d)(1) of this section for these purposes.

(4) Where transfer of ownership of the debt to the covered person is or may be recorded in public records, or, alternatively, that the transfer of ownership has not been recorded in public records at the time the disclosure is provided.

(e) Optional disclosures. In addition to the information required to be disclosed under paragraph (d) of this section, a covered person may, at its option, provide any other information regarding the transaction.

[75 FR 58501, Sept. 24, 2010]

Notes of Decisions

Cited in 14 cases (3 in the last 5 years), 2011–2025 · leading case: Dawn W. Kinard v. NationStar Mortg., LLC, 572 S.W.3d 197 (Tenn. Ct. App. 2018).

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Dawn W. Kinard v. NationStar Mortg., LLC, 572 S.W.3d 197 (Tenn. Ct. App. 2018). · cites it 3× “The Kinards’ claim is predicated on the allegation that the bank did not give the notice required under 12 C.F.R. § 226.39 . That section, and its statutory parallel 15 U.”

Coleman v. Wells Fargo Banks, N.A., 218 F. Supp. 3d 597 (M.D. Tenn. 2016). · cites it 2× “claim for estoppel based on Wells Fargo’s delay in actually foreclosing on the Property (Count II); a claim for fraud in the inducement of the Loan based on Fairway Financial’s alleged failure to disclose the “toxic and exploitative” features of the Loan, in particular its…”

Samuel Humphreys v. Bank of Am., 557 F. App'x 416 (6th Cir. 2014). “§ 1641 (g)(1) and 12 C.F.R. § 226.39 (a)(1). This reporting requirement, however, applies only to “new owner[s] or assignee[s] of the debt,” 15 U.”

Olasumbo Ajetunmobi v. Countrywide Home Loans, 595 F. App'x 680 (9th Cir. 2014). “” 12 C.F.R. § 226.39 (a)(1). A covered person is an entity that “becomes the owner of an existing mortgage loan by acquiring legal title to the debt obligation.”

Bazemore v. U.S. Bank, N.A., 167 F. Supp. 3d 1346 (N.D. Ga. 2016). “Finally, Plaintiffs assert that Defendant violated TILA Sections 1641© & (g) and 12 C.F.R. § 226.39 when Defendant (1) failed to provide Plaintiffs with a response to their requests for the identity of the owner of their debt, and (2) failed to notify Plaintiffs of the…”

Zirogiannis v. Dreambuilder Investments LLC, 782 F. Supp. 2d 14 (E.D.N.Y 2011). “§ 1641 (g) and 12 C.F.R. § 226.39 . Those sections require, with certain exceptions discussed in pertinent part below, that when a new lender takes title to an existing mortgage loan, the lender must, “not later than 30 days after the date on which a mortgage loan is sold or…”

Reed v. Chase Home Fin., LLC, 893 F. Supp. 2d 1250 (S.D. Ala. 2012). “12 C.F.R. § 226.39 (a)(1). Invoking “common sense,” the plaintiffs assert that the phrase captures only “non-substantial ministerial duties.”

Quarles v. Wells Fargo Bank, N.A. (D. Maryland 2022). · cites it 3× “§ 1641 (g), and 12 C.F.R. § 226.39 , the Real Estate Settlement Procedures Act (“RESPA”), 12 U.”

Daniels v. PennyMac Loan Servs., LLC (S.D. Tex. 2023). · cites it 2× “The disclosure requirements that Daniels attempts to invoke are contained in 12 C.F.R. § 226.39 (d) and 12 C.F.R. § 1026.”

Wright v. Green Tree Servicing LLC, 685 F. App'x 67 (2d Cir. 2017). “12 C.F.R. § 226.39 (d). The Wrights argue that the notice is defective not because it fails to *69 include any of the enumerated items, but because it insufficiently “identifies] the loan.”

O'Hara v. MortgageIT, Inc (D. Conn. 2019). “21, 2015); 12 C.F.R. § 226.39 . Since Mr. O’Hara alleges that his loan was sold to Lehman Brothers and then to Merrill Lynch “before year end 2006,” he has not stated a claim for a violation of Regulation Z.”

Scott Burkley a/k/a Scott Berkley v. US Bank NA, Tr. for LSF9 Participation Trust, Ocwen Loan Servicing LLC, First Nat'l Realty Inc., LSF9 Participation Trust, & Glen Hardy (Miss. Ct. App. 2020). “Wells 7 Following the transfer of authority to enforce Regulation Z from the United States Department of Housing and Urban Development (HUD) to the Credit Financial Protection Bureau (CFPB), 12 C.”

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— 12 C.F.R. § 226.39(a)(1) — 1 case

Bank of Am. v. Frappier, V. (Pa. Super. Ct. 2015).

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