The sale and movement of “servicing” is an area Congress has neglected to properly regulate. It’s bad enough that only servicing requires homeowner notification when its the sale, pledge, transfer, rehypothecation of the actual collateral that significantly effects the homeowner – and there is no notification requirement. IMHO the servicing requirement notification should include a copy of the agreements between the banks selling or transferring the servicing rights – it should be made public and accessible. We should know if the investor is in agreement and/or willing to have the servicing transferred or sold.
Think of it this way – what if the servicing is moved to an undesirable entity? Maybe the trust is not notified. However, if they are notified and the servicer is under investigation by the SEC or OCC then maybe the investor/Trustees should also be investigated, including “Fannie, as financial agent for the United States.” Maybe then we’d find out why there is so much servicing maneuvering.
