15 U.S.C. § 1641 — Liability of assignees

(a) Prerequisites. Unless this subchapter specifically provides otherwise, a civil action for violating this subchapter, or a proceeding under section 1607, that could be brought against a creditor^* may be maintained against the creditor’s assignee only if the violation is apparent on the face of the disclosure statement. This does not apply when the assignment was involuntary. For this section, a violation is apparent on the face of the disclosure statement if, among other things: (1) the disclosure can be determined to be incomplete or inaccurate from the face of the disclosure statement or other assigned documents; or (2) the disclosure does not use the terms this subchapter requires.

(b) Proof of compliance with statutory provisions. Except as provided in section 1635(c), in an action or proceeding by or against a later assignee of the original creditor, if the assignee had no knowledge to the contrary when acquiring the obligation, the written acknowledgment by the person^* who was required to receive the statement is conclusive proof that the statement was delivered. Except as provided in subsection (a), it is also conclusive proof that this part was followed. This section does not change the obligor’s rights in an action against the original creditor.

(c) Consumer’s right to rescind remains. A consumer who has the right to rescind a transaction under section 1635 may rescind the transaction against any assignee of the obligation.

(d) Rights when certain mortgages are assigned.

(1) General rule. A person who purchases or otherwise receives an assignment of a mortgage referred to in section 1602(aa) is subject to all claims and defenses concerning that mortgage that the consumer could assert against the mortgage’s creditor. This does not apply if the purchaser or assignee proves, by a preponderance of the evidence, that a reasonable person exercising ordinary due diligence could not determine—based on the documentation required by this subchapter, the itemization of the amount financed, and other disclosures of disbursements—that the mortgage was a mortgage referred to in section 1602(aa). The preceding sentence does not affect a consumer’s rights under subsection (a), (b), or (c), or under any other provision of this subchapter.

(2) Limit on damages. Regardless of any other law, relief from an action allowed by paragraph (1) may not exceed: (A) for an action based on a violation of this subchapter, the amount specified in section 1640; and (B) for all other causes of action, the total of (i) all remaining indebtedness and (ii) all amounts the consumer paid in connection with the transaction.

(3) Offset. The damages that may be awarded under paragraph (2)(B) must be reduced by any damages awarded under paragraph (2)(A).

(4) Notice. A person who sells or otherwise assigns a mortgage referred to in section 1602(aa) must include a prominent notice of the potential liability under this subsection, as the Bureau^* determines.

(e) Assignee liability for consumer credit^* transactions secured by real property.

(1) General rule. Unless this subchapter specifically provides otherwise, a civil action against a creditor for violating this subchapter, or a proceeding under section 1607 against a creditor, concerning a consumer credit transaction secured by real property may be maintained against the creditor’s assignee only if: (A) the violation is apparent on the face of the disclosure statement provided for the transaction under this subchapter; and (B) the assignment to the assignee was voluntary.

(2) When a violation is apparent on the face of the disclosure. For this section, a violation is apparent on the face of the disclosure statement if: (A) the disclosure can be determined to be incomplete or inaccurate by comparing the disclosure statement with any itemization of the amount financed, the note, or any other disclosure of disbursement; or (B) the disclosure statement does not use the terms or format this subchapter requires.

(f) Treatment of a servicer.

(1) General rule. A servicer of a consumer obligation arising from a consumer credit transaction is not treated as the obligation’s assignee for this section unless the servicer is or was the obligation’s owner.

(2) Servicer not treated as owner because of an assignment for administrative convenience. A servicer of a consumer obligation arising from a consumer credit transaction is not treated as the obligation’s owner for this section merely because the creditor or another assignee assigned the obligation to the servicer solely for the servicer’s administrative convenience in servicing it. If the obligor makes a written request, the servicer must provide the obligor, to the best of the servicer’s knowledge, with the name, address, and telephone number of the obligation’s owner or master servicer.

(3) Definition of “servicer.” For this subsection, “servicer” has the same meaning as in section 2605(i)(2) of title 12.

(4) Applicability. This subsection applies to all consumer credit transactions that existed or were completed on or after September 30, 1995.

(g) Notice of a new creditor.

(1) General rule. In addition to the other disclosures this subchapter requires, no later than 30 days after a mortgage loan is sold or otherwise transferred or assigned to a third party, the creditor that is the debt’s new owner or assignee must notify the borrower in writing of the transfer. The notice must include: (A) the new creditor’s identity, address, and telephone number; (B) the transfer date; (C) how to reach an agent or other party authorized to act for the new creditor; (D) the location where the transfer of ownership of the debt is recorded; and (E) any other relevant information about the new creditor.

(2) Definition. In this subsection, “mortgage loan” means a consumer credit transaction secured by a consumer’s principal dwelling.

This section does not define the other terms it uses, including “creditor,” “consumer,” “obligor,” “assignee,” “mortgage,” “disclosure statement,” “amount financed,” “note,” “disbursement,” “owner,” “master servicer,” and “principal dwelling.”