Notice upon transfer of servicing rights - prior servicer's offer to borrower survives transfer - definitions.

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(1) As used in this section:

  1. "Borrower" means a person liable under an evidence of debt constituting a residentialmortgage loan.

  2. "Evidence of debt" has the meaning set forth in section 38-38-100.3 (8).

  3. "Holder" means the holder of an evidence of debt constituting a residential mortgageloan.

  4. "Residential mortgage loan" has the meaning set forth in section 12-10-702 (21).

  5. (I) "Servicer" means a person who collects, receives, or has the right to collect orreceive payments on behalf of a holder, including payments of principal, interest, escrow amounts, and other amounts due on obligations due and owing to the holder.

(II) "Servicer" includes:

  1. The person or entity to whom payments are to be sent, as listed on the most recentbilling statement or payment coupon provided to the borrower; or

  2. A subsidiary, affiliate, or assignee of a servicer, however designated, including aperson designated as a subservicer.

  1. A servicer to whom servicing rights for a residential mortgage loan have been sold ortransferred by the holder or by a predecessor servicer is subject to, and shall honor, the borrower's acceptance, prior to the sale or transfer of servicing rights, of any offer previously made by the holder or predecessor servicer in connection with a modification of a residential mortgage loan.

  2. At the time of the transfer or sale of servicing rights for a residential mortgage loan,the transferor or seller shall inform the buyer or transferee of the servicing rights whether a loan modification is pending.

  3. A contract for the transfer or sale of servicing rights for a residential mortgage loanmust obligate the successor servicer to:

  1. Accept and continue processing any pending loan modification requests; and

  2. Honor any trial and permanent loan modification agreements entered into by theprior servicer.

Source: L. 2013: Entire section added, (HB 13-1017), ch. 36, p. 103, § 1, effective March 15. L. 2019: (1)(d) amended, (HB 19-1172), ch. 136, p. 1725, § 240, effective October 1.


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