Which law requires a loan servicer to notify the borrower 15 days before transferring the loan?

The requirement for a loan servicer to notify a borrower at least 15 days prior to transferring the loan is indeed outlined in the Real Estate Settlement Procedures Act (RESPA). RESPA focuses on ensuring that homeowners receive timely and accurate information about the servicing of their loans and the costs associated with it. This includes the transfer of servicing rights, which is important for maintaining transparency and enabling borrowers to know who is managing their loan and where to send payments.

The law aims to protect consumers and promote consistency and transparency in the real estate settlement process. By requiring this notification, RESPA helps borrowers avoid confusion and potential disruptions in payment processes, as well as ensures they can reach the correct entity for questions or concerns about their mortgage.

In contrast, the Dodd-Frank Act encompasses various regulations aimed at improving financial stability and protecting consumers but does not specify this particular notification requirement. The Truth-In-Lending Act is designed primarily to ensure that borrowers are fully informed about the costs of credit before entering into a mortgage, while the TILA-RESPA Integrated Disclosure Rule focuses on combining disclosures required under the two acts to simplify the understanding of loan terms and costs, rather than addressing the notification of loan transfers.