ABA President and CEO Frank Keating:
Gratefully, the rules retain flexibility for some existing servicing practices that have served borrowers and relationship-based lenders well, and provide helpful exemptions for institutions servicing 5,000 or fewer loans.Keating explained that ABA recognizes the need for reforming certain mortgage servicing practices and agrees that consumers need to be well informed about the terms of their mortgage loans.
We’re concerned that some of the CFPB’s new requirements are not expressly mandated by Dodd-Frank and could lead to further consolidation in the servicing industry, increasing the cost of credit and harming borrowers.Read Keating’s statement.
ABA will continue to study today's rulemaking and its impact on the cost of mortgage servicing. We will also continue to work with the bureau to ensure the availability and affordability of mortgage-related products and services for borrowers nationwide.
Read the CFPB press release.
Read the final rules.