Which consumer law imposes requirements for mortgage servicing transfers and continuity of contact for delinquent borrowers?

Study for the CFPB Mortgage Compliance Test. Learn with detailed quizzes and flashcards. Understand the key concepts, regulations, and guidelines with comprehensive explanations. Get ready to ace your exam!

The correct choice pertains to the Real Estate Settlement Procedures Act (RESPA), which outlines specific requirements regarding mortgage servicing, especially during transfers of servicing rights. RESPA mandates that mortgage servicers must provide certain disclosures to borrowers, ensuring they are informed about whom the creditor is and how to contact them if servicing of their loan changes.

Additionally, RESPA includes provisions intended to protect consumers who may be struggling with payments. It requires servicers to maintain continuity of contact with delinquent borrowers, ensuring these borrowers have access to information about their options and can communicate effectively with the current servicer. This facilitates a more transparent and supportive process for those facing difficulties, which is a fundamental aspect of responsible mortgage servicing.

The other laws listed, although significant in their own rights, address different aspects of lending and consumer protection. The Equal Credit Opportunity Act (ECOA) primarily focuses on prohibiting discrimination in lending practices. The Truth in Lending Act (TILA) is concerned with disclosing the terms and costs of credit. The Homeowners Protection Act (HPA) deals primarily with the removal of private mortgage insurance (PMI) under certain conditions. Each of these acts serves an important purpose, but none specifically addresses the requirements for servicing transfers and ongoing support for

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