The CFPB today is scheduled to issue its mortgage servicing final rules in conjunction with CFPB Director Richard Cordray’s field hearing on the regulations in Atlanta.
This morning the CFPB issued a press release with a fact sheet and summary of the final rules that amend the mortgage servicing provisions of the Truth in Lending Act and the Real Estate Settlement Procedures Act. The rules, which are divided into two sets—one for TILA and the other for RESPA—impose a slew of new requirements in nine major areas.
Those areas include, among others, interest-rate adjustment notices; prompt payment crediting and payoff statements; error resolution and information requests; periodic billing statements; lender-placed insurance; early intervention with delinquent borrowers; and loss mitigation procedures.
Servicers that handle 5,000 mortgage loans or less that they or an affiliate own or originate are exempt from some of the new rules. The exemptions include many of the procedural rules, including most of the requirements on the handling of loss mitigation applications.
The rules go into effect on Jan. 10, 2014.
Read a summary of the rules.
Read a fact sheet on the rules.
Check here for the final rules.