Definition: A disclosure about whether a lender expects to service a mortgage or transfer servicing. For many covered loans, this information is included in the Loan Estimate; other disclosure and transfer-notice rules can apply.
Example
A borrower learns that another company may later collect payments and administer the loan account.
Keep the distinction clear
Transferring servicing differs from changing the loan's agreed terms or necessarily selling ownership of the debt. A later servicing transfer involves its own notices and protections.
Related terms
Loan Servicing · Assignment of Mortgage · Good Faith Estimate (GFE)
Keep studying
Loan Estimate, Closing Disclosure, and Loan Approval: Different Steps
References: CFPB Regulation X: mortgage servicing disclosures
Pronunciation (US): SUR-vih-sing dis-KLOH-zher STATE-ment (capitals show stress)
Pronunciation reference: Merriam-Webster
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