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Monday, April 3, 2017

New Article Focuses on Servicing Rule Compliance Challenges

In a newly posted article from a forthcoming issue of the ABA Banking Journal, ABA VP Krista Shonk explores two key considerations for compliance and mortgage teams racing to implement the CFPB's latest updates to its servicing rules. These two key factors are successors in interest and periodic statements for borrowers in bankruptcy, the requirements for both of which take effect in April 2018.

Shonk details policies and procedures banks will need to adopt to implement the successors in interest provision, as well as how banks will treat confirmed successors. She also addresses the new requirements for periodic statements, which represent "a significant departure" from prior practice.

Shonk writes,
Even though the requirements pertaining to successors in interest and periodic statements for borrowers in bankruptcy don’t go into effect until April 2018, implementation of these provisions is anticipated to be a substantial task. Banks should begin implementation as soon as possible, while being mindful of the October 2017 implementation deadline for all other provisions of the new servicing rules.

To help facilitate compliance, ABA recently released a 200-page, members-only Reference Guide to Mortgage Servicing.

Read the article.
Download the reference guide.

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