Sec. 18.56.135. Loan servicing requirements.

353 words·~2 min read·/ak/title-18/chapter-56/18-56-135·

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(a)If the servicing of a loan is sold to another person, the seller shall notify the mortgagor of the sale within 10 days after the actual date of the sale. The notification must include

(1)the name, address, and telephone number of the person who will assume responsibility for the servicing and accept payments for the loan;

(2)a detailed written financial breakdown of the loan, including the interest rate, monthly payment amount, and current escrow balance.

(b)The purchaser of loan servicing under

(a)of this section shall

(1)issue to the mortgagor corrected coupon or payment books, if used;

(2)within 20 days after the due date of the first payment to be made to the purchaser,

(A)notify the mortgagor of the name, address, and telephone number of the person from whom the mortgagor can receive information regarding the servicing of the loan;

(B)inform the mortgagor of changes made regarding the loan escrow account or servicing requirements, including the interest rate, monthly payment amount, and current escrow balance.

(c)A loan servicing agent shall respond within 15 business days to a written request for information from the mortgagor. The written response must include the telephone number of the agent's representative who can assist the mortgagor.

(d)If a mortgagor of a loan is required to maintain funds in an escrow account to cover the payment of the tax or insurance obligations for the mortgaged property, the loan servicing agent shall make each tax or insurance payment in a timely manner as the obligations become due if the funds in the account are sufficient to cover the payment. If the funds in the account are insufficient to make the payment, the loan servicing agent shall promptly notify the mortgagor of the shortage and may make the payment on behalf of the mortgagor.

(e)In this section,

(1)“loan” means a mortgage loan purchased by the corporation under a residential housing loan program authorized by this chapter;

(2)“loan servicing agent” means an institution other than the Alaska Housing Finance Corporation that services a loan.