CFPB Tinkers With Mortgage Servicing Rules
October 4, 2017
The Consumer Financial Protection Bureau (CFPB) issued an interim final rule and a proposed rule to provide mortgage servicers designed to alleviate and clarify requirements related to communicating with borrowers.
According to the CFPB, the interim final rule will provide servicers with more flexibility on when to communicate about foreclosure prevention options with borrowers who have requested a cease in communication under federal debt collection law. The proposed rule is designed to offer mortgage servicers with a clarification on when to provide periodic statements to consumers in connection with their bankruptcy case. Both the interim final rule and the proposed rule are being offered as enhancements to the CFPB’s 2016 changes to the mortgage servicing rules.
“Today’s action should make it easier for mortgage borrowers to receive timely information from their mortgage servicers about available options for saving their home, even if they have submitted a request to cease communication,” said CFPB Director Richard Cordray. “In addition, we are proposing changes to clear up confusion about when to provide periodic statements with important loan information to borrowers in bankruptcy.”
The interim final rule becomes effective on Oct. 19, and the CFPB is seeking comment on this rule and will consider whether to revisit it in the future. The proposed effective date for the proposed rule is April 19, 2018. The comment period for both will close 30 days after publication in the Federal Register.