Current through Register Vol. 54, No. 45, November 9, 2024
Section 59.4 - General disclosure requirements(a)Disclosure requirements.(1)Form of disclosures. Except as otherwise provided in this chapter, disclosures required under this chapter must be clear and conspicuous, in writing and in a form that a recipient may keep. The disclosures required by this chapter may be provided in electronic form, subject to compliance with the consumer consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. §§ 7001-7031), as set forth in 12 CFR 1024.3 (relating to E-Sign applicability). A servicer may use commonly accepted or readily understandable abbreviations in complying with the disclosure requirements of this chapter.(2)Foreign language disclosures. Disclosures required under this chapter may be made in a language other than English, provided that the disclosures are made available in English upon a recipient's request.(b)Additional information; disclosures required by other laws. Unless expressly prohibited in this chapter, by other applicable law, such as the Truth in Lending Act (15 U.S.C. §§ 1601-1667f) or the Truth in Savings Act (12 U.S.C. §§ 4301-4313), or by the terms of an agreement with a Federal regulatory agency or the Department, a servicer may include additional information in a disclosure required under this chapter or combine any disclosure required under this chapter with any disclosure required by such other law.(c)Successors in interest.(1)Optional notice with acknowledgment form. Upon confirmation, a servicer may provide a confirmed successor in interest who is not liable on the mortgage loan obligation with a written notice together with a separate acknowledgment form that meets the requirements of paragraph (c)(1)(iv) of this section and that does not require acknowledgment of any items other than those identified in paragraph (c)(1)(iv) of this section. The written notice must clearly and conspicuously explain that:(i) The servicer has confirmed the successor in interest's identity and ownership interest in the property;(ii) Unless the successor in interest assumes the mortgage loan obligation under law, the successor in interest is not liable for the mortgage debt and cannot be required to use the successor in interest's assets to pay the mortgage debt, except that the lender has a security interest in the property and a right to foreclose on the property, when permitted by law and authorized under the mortgage loan contract;(iii) The successor in interest may be entitled to receive certain notices and communications about the mortgage loan if the servicer is not providing them to another confirmed successor in interest or borrower on the account;(iv) In order to receive such notices and communications, the successor in interest must execute and provide to the servicer an acknowledgment form that:(A) Requests receipt of such notices and communications if the servicer is not providing them to another confirmed successor in interest or borrower on the account; and(B) Indicates that the successor in interest understands that such notices do not make the successor in interest liable for the mortgage debt and that the successor in interest is only liable for the mortgage debt if the successor in interest assumes the mortgage loan obligation under law; and(C) Informs the successor in interest that there is no time limit to return the acknowledgment but that the servicer will not begin sending such notices and communications to the confirmed successor in interest until the acknowledgment is returned; and(v) Whether or not the successor in interest executes the acknowledgment described in paragraph (c)(1)(iv) of this section, the successor in interest is entitled to submit notices of error under § 59.7 (relating to error resolution procedures), requests for information under § 59.8 (relating to requests for information), and requests for a payoff statement under 12 CFR 1026.36 (relating to prohibited acts or practices and certain requirements for credit secured by a dwelling) with respect to the mortgage loan account, with a brief explanation of those rights and how to exercise them, including appropriate address information.(2)Effect of failure to execute acknowledgment. If, upon confirmation, a servicer provides a confirmed successor in interest who is not liable on the mortgage loan obligation with a written notice and acknowledgment form in accordance with paragraph (c)(1) of this section, the servicer is not required to provide to the confirmed successor in interest any written disclosure required by 12 CFR 1024.17 (relating to escrow accounts), or § 59.5, § 59.6, § 59.9, or § 59.11 or to comply with the live contact requirements in § 59.11(a) (relating to early intervention requirements for certain borrowers) with respect to the confirmed successor in interest until the confirmed successor in interest either assumes the mortgage loan obligation under State law or executes an acknowledgment that complies with paragraph (c)(1)(iv) of this section and provides it to the servicer.(3)Additional copies of acknowledgment form. If a servicer provides a confirmed successor in interest with a written notice and acknowledgment form in accordance with paragraph (c)(1) of this section, the servicer must make additional copies of the written notice and acknowledgment form available to the confirmed successor in interest upon written or oral request.(4)Multiple notices unnecessary. Except as required by § 59.8, a servicer is not required to provide to a confirmed successor in interest any written disclosure required by 12 CFR 1024.17, or 59.5, 59.6, 59.9, or 59.11(b) if the servicer is providing the same specific disclosure to another borrower on the account. A servicer is also not required to comply with the live contact requirements set forth in § 59.11(a) with respect to a confirmed successor in interest if the servicer is complying with those requirements with respect to another borrower on the account.The provisions of this §59.4 amended September 24, 2021, effective 9/25/2021, 51 Pa.B. 6145.The provisions of this §59.4 amended under 7 Pa.C.S. 7 Pa.C.S. § 6141(a)(2).