When a loan or an interest in a loan other than a participation interest is sold with servicing rights, the disclosure shall be made to the borrower in accordance with this section:
The selling institution shall disclose to the borrower at least 10 days prior to the borrower's next payment date;
The name, address, and telephone number of the purchasing institution;
The name and address of the party to whom payment is to be made;
A description of the impact of the sale on statutory borrower rights after the sale;
Any terms in the agreement that would permit a purchaser to change the terms or conditions of the loan.
A Farm Credit System institution that purchases a loan or a non-participation interest therein shall not take any servicing action that adversely affects the borrower until it ensures that disclosure has been made to the borrower of:
The name, address, and telephone number of the purchasing institution; and
The address where the payment should be sent.
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