Which section of RESPA covers the servicing disclosure requirements?

The servicing disclosure requirements are covered under Section 6 of the Real Estate Settlement Procedures Act (RESPA). This section is specifically designed to ensure that consumers are informed about the servicing of their mortgage loans, including the responsibilities of loan servicers and the rights of borrowers.

Section 6 mandates that lenders provide a written notice to borrowers when there is a transfer of loan servicing, ensuring that borrowers are aware of who is managing their mortgage payments and related issues. It also addresses what consumers should expect regarding the handling of their accounts, which enhances transparency and protects borrower rights.

Understanding this section is key for mortgage loan officers, as it informs them about their obligations in communicating with borrowers about potential changes in loan servicing, thus facilitating compliance with regulatory requirements.