Mortgage Servicing under the Real Estate Settlement Procedures Act (Reg X); Final Rule, Official Interpretations (CFPB - Pre-Fed. Reg. Version)
The CFPB has amended Regulation X and issued an official commentary to the regulation with respect to mortgage servicer obligations. The amendments implements the sections of the Dodd-Frank Act addressing servicers’ obligations to:
- Correct errors asserted by mortgage loan borrowers;
- Provide certain information requested by such borrowers; and
- Provide protections to such borrowers in connection with force-placed insurance.
The regulation further addresses servicers’ obligations to:
- Establish reasonable policies and procedures to achieve certain delineated objectives;
- Provide information about mortgage loss mitigation options to delinquent borrowers;
- Establish policies and procedures for providing delinquent borrowers with continuity of contact with servicer personnel capable of performing certain functions; and
- Evaluate borrowers’ applications for available loss mitigation options.
This final rule also modifies and streamlines certain existing servicing-related provisions of Regulation X.
Effective Date: January 10, 2014.
Cross-Reference(s): Dodd-Frank Sections 1411 ("Ability to Repay"), 1412 ("Safe Harbor and Rebuttal Presumption"), and 1414 ("Additional Standards and Requirements").
Click here to view rule release in full (links externally to CFPB website).See also: Text of rule amendment only; Official interpretations only; Mortgage Servicing Rule under the Real Estate Settlement Procedures Act as proposed (77 FR 57199).