Mortgage Servicing Transfer Disclosure Act of 1988

Mortgage Servicing Transfer Disclosure Act of 1988 - Amends the Real Estate Settlement Procedures Act of 1974 to require any person who makes federally related mortgage loans to disclose to each applicant for any such loan: (1) whether the servicing of such loan may be transferred while such loan is outstanding; (2) if the recent practice has been to transfer the servicing of a substantial number of federally related mortgage loans; and (3) whether it is probable that the servicing of such a loan will be transferred while such loan is outstanding.

Specifies that no such disclosure shall be effective unless accompanied by a written statement, signed by the applicant, that the applicant has read and understood such disclosure.

Requires any person transferring the servicing of a federally related mortgage loan to notify the borrower at the time of such transfer. Specifies the form and content of such notice. Requires the transferee of such loan servicing to give similar notice to the borrower.

Provides that no loan payments made during the 60-day period following such a transfer shall be treated as late and no late fee shall be imposed if the loan payment is made by the borrower on or before the due date but is remitted to the wrong servicer.

Requires any servicer of a federally related mortgage loan to respond in writing to any written request by the borrower for information relating to the servicing of such loan within 20 days of the receipt of such request.

Provides that if the terms of any federally related mortgage loan require the borrower to make payments to the servicer of such loan for deposit into an escrow account for the payment of property taxes and insurance, then the servicer shall: (1) make the payments for such taxes and insurance in a timely manner; and (2) notify the borrower of any shortage of funds in the escrow account.

Imposes civil liability for failure to comply with the requirements of this Act.

Requires the Comptroller General of the United States to conduct a study of the impact on consumers of the present and past practices of banks and thrift institutions and their mortgage subsidiaries in transferring the mortgage servicing activities of such institutions. Requires the Comptroller General to report to the Congress concerning the results of such study within one year after the enactment of this Act.