Section 131(g) of the Truth in Lending Act (15 USC § 1641) (TILA) Transfer of Mortgage


This section was amended on May 19, 2009, to include a new provision requiring the assignee of a mortgage loan to notify a consumer borrower that there has been a Transfer of Mortgage. Section 131(g) requires the new owner or assignee of a mortgage loan must notify the borrower in writing within 30 days after the mortgage loan is sold or otherwise transferred. This Transfer of Mortgage notification must include the following:

  1. The assignee’s identity, address and phone number;
  2. The date of transfer;
  3. Contact information for an agent or party having authority to act on behalf of the assignee;
  4. The location or the place where transfer of ownership of the debt is recorded; and,
  5. Any other relevant information regarding the assignee.

An Assignee that violates this notice requirement is subject to civil penalties under Section 130(a) of TILA. Further, effective July 31, 2009, the maximum penalty increased from $2000.00 to $4000.00 that an individual consumer may recover for each TILA violation in connection with a closed-end loan secured by real property or a dwelling increased. Additionally, TlLA’s Section 108 provides that “a violation of any requirement imposed under TILA shall be deemed a violation of a requirement imposed under [the FTC’s Act],” regardless of whether a person committing a violation otherwise comes sunder the FTC’s jurisdiction. For willful or knowing violations, a person may be fined up to $5,000 and/or imprisoned for up to one year, in accordance with Section 112 of TILA.

Verification and proof of Transfer of Mortgage is needed to show that you have been the victim of TILA violations. Homeowners must do their due diligence and proceed through legal channels to get the necessary help as outlined under 15 U.S.C.A. § 112.