Mortgage Servicers Take Heed: The CFPB Has New Rules for How You Do Business

[Video: A New World for Mortgage Banking – What You Need to Know
About the CFPB’s Final Mortgage Servicing Rules
– Pepper Hamilton LLP]

The Consumer Financial Protection Bureau recently issued two rules that are going to change the way mortgage service companies do business:

  • the 2013 RESPA Servicing Final Rule, an amendment to Regulation X under the Real Estate Settlement Procedures Act (RESPA), and
  • the 2013 TILA Servicing Final Rule, an amendment to Regulation Z under the Truth In Lending Act (TILA)

Law firm Pepper Hamilton recently led an online presentation on the implications of the new regulations for the mortgage servicing industry. In particular, they addressed the nine major topics covered by the final rules:

  1. Periodic Billing Statements – TILA (Regulation Z)
  2. ARM Notices – TILA (Regulation Z)
  3. Prompt Payment Crediting and Payoff Statements – TILA (Regulation Z)
  4. Force-placed Insurance – RESPA (Regulation X)
  5. Servicing Policies and Procedures/Information Management – RESPA (Regulation X)
  6. Error Resolution & Information Requests – RESPA (Regulation X)
  7. Early Intervention – RESPA (Regulation X)
  8. Continuity of Contact with Delinquent Borrowers – RESPA (Regulation X)
  9. Loss Mitigation Procedures – RESPA (Regulation X)

Find additional commentary on the Mortgage Loan Servicing Standards at JD Supra>>