Small Servicer Definition
A small servicer, defined as a servicer that, together with any affiliates,
services 5,000 or fewer mortgage loans for which the servicer (or
affiliate) is the creditor or assignee, is exempt from certain
requirements under the rules. The 2016 Amendments modify the
definition of small servicer so that loans serviced for a non-affiliate will
not count towards the 5,000 limit if they are serviced voluntarily and
without compensation. The amendments also exclude transactions
serviced by a seller financer that meet all of the criteria identified in
the definition provided under ยง 1026.36(a)(5) of Regulation Z.
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