Today the Consumer Financial Protection Bureau (CFPB) is releasing final rules to implement laws to protect consumers from detrimental actions by mortgage servicers and to provide consumers with better tools and information when dealing with mortgage servicers. The rules impact those who service loans in their own portfolios and those who service loans owned by others.The rules will take effect on January 10, 2014.
The servicing rules are set forth in two notices, one to amend Regulation Z, which implements the Truth in Lending Act, and one to amend Regulation X, which implements the Real Estate Settlement Procedures Act. The rules cover the following major topics:
1. Periodic billing statements.
2. Interest-rate adjustment notices for ARMs.
3. Prompt payment crediting and payoff statements.
4. Force-placed insurance.
5. Error resolution and information requests.
6. General servicing policies, procedures, and requirements.
7. Early intervention with delinquent borrowers.
8. Continuity of contact with delinquent borrowers.
9. Loss Mitigation Procedures.
A copy of the Regulation X revisions can be found here.
A copy of the Regulation Z revisions can be found here.