Compliance: CFPB issues updated mortgage services rules
The Consumer Financial Protection Bureau’s (CFPB) mortgage servicing requirements will likely add to credit unions’ regulatory burden, CUNA believes, but what do they mean for credit unions from a compliance standpoint? CUNA compliance staff examined the new measures, which are designed to provide protections to borrowers facing foreclosure.
The measures finalize proposed mortgage servicing amendments issued in November 2014. They clarify protections when the servicing of the loan is transferred and ensure that successors in interest who inherit or receive the property are afforded the same protections as the borrower, as well as providing loan information to borrowers in bankruptcy.
Highlights from the new rule include:
- Allowing certain borrowers to receive loss mitigation protections more than once, giving borrowers the right to right to be evaluated under the CFPB’s requirements for options to avoid foreclosure more than once. Specifically, borrowers who have brought their loans current at any time since submitting a loss mitigation application will now be eligible for protection again;
Discussion