| If a
loan is secured by California real property containing
one-to-four residential units, California law requires
notice to the borrower when the servicing/collection function
is transferred, even though the transaction is not subject
to RESPA. The notice must be delivered before the borrower
is obligated to redirect the payments. Transfer of the
servicing/collection function to a trustee exercising
a power of sale under a deed of trust does not constitute
a transfer of loan servicing under this law. Civil
Code Section 2937
Note: Federal regulations have also
been promulgated for notice of transfer of loan servicing
and the notice is now a requirement of RESPA.
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us for more info on CA Notice of Transfer of Loan Servicing
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