RESPA – Early Intervention

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    The following question was submitted by email and we wanted to share it with you.

    CFPB Bulletin 2013-12 has to do with identifying and communicating with a successor in interest of a deceased borrower, modification of the Early Intervention Rule, and the interplay between these rules and the FDCPA. As a Small Servicer, we are exempt from the requirements of the Early Intervention Rule. Are we also exempt from the successor in interest and the communication vs the FDCPA?

    Answer: The small servicer exemption is in RESPA, not FDCPA. However, I suspect that the FDCPA does not directly impact your operations. The FDCPA does not apply when your bank is collecting debts owed to your bank. It applies when your bank is collecting debts owed to a third party.

    Most banks follow FDCPA guidance because while engaging in practices prohibited by the FDCPA may not be violations of the FDCPA. engaging in such practices may be UDAAP violations.

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